Watson Health Acquires Truven Health Analytics for $2.6B

IBM?EU?s Watson Health has just laid down $2.6 billion to buy a cloud-based healthcare data, analytics and insights provider from Veritas Capital. Will Big Blue?EU?s big bet on Truven Health Analytics pay dividends in the near-term?

On the surface, it appears to a strategic buy. Truven has over 8,500 clients spanning hospitals, health plans, clinicians, life science companies and U.S. state and federal government agencies. With the acquisition, these clients become part of the Watson Health portfolio and give IBM bragging rights for holding one of the most extensive and diverse arrays of healthcare-related data.

To put the breadth into perspective, about 33 percent of Americans rely on Truven's data and insights to make decisions about their healthcare benefits, IBM said in a statement. All told, Watson hosts an aggregate of about 300 million patient records.

IBM was attracted to Truven because of its ?EU?impressive team, extensive client roster, and expansive data sets?EU? that complement Watson Health?EU?s existing resources, said Deborah DiSanzo, general manager for IBM Watson Health, in the statement. Truven?EU?s cloud-based data set includes hundreds of types of claims, cost and quality and outcome data.

IBM?EU?s Achievable Goal

We asked Charles King, principal analyst at Pund-IT, for his thoughts on the $2.6 billion acquisition. He told us it?EU?s safe to say IBM is a leading player in healthcare analytics, especially given the size of its investment in the space.

?EU?Truven?EU?s technology assets and 8,500 customers make it a particularly valuable acquisition for IBM but the potential market is far larger and getting bigger every day,?EU? King said. ?EU?What this deal makes clear is that IBM intends to be a leading player in healthcare analytics for a very long time to come. Given the company?EU?s internal investments, such as Watson Health, and continuing external acquisitions, that goal seems fully achievable.?EU?

IBM has now acquired...

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