GE HealthCare to buy Intelerad for $2.3 billion to expand in outpatient care market

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By Padmanabhan Ananthan

(Reuters) -GE HealthCare said on Thursday it will acquire medical imaging software provider Intelerad for $2.3 billion in cash as the medical device maker seeks to expand into outpatient care markets.

The deal gives GE HealthCare, whose equipment are prominent in hospitals, access to Intelerad’s cloud-based medical imaging software and other solutions that are used by outpatient care clinics.

Outpatient enterprise imaging presents an attractive high-growth, $2 billion-plus opportunity for the company worldwide, GE HealthCare said.

Intelerad also offers products through a software-as-a-service model, helping GE HealthCare significantly increase its recurring revenue.

“As GEHC pushes to increase use of internally developed AI algorithms within Imaging, we think it will pair well with Intelerad’s suite of products over time, likely accelerating adoption,” BTIG analyst Ryan Zimmerman said.

The medical device maker expects Intelerad’s acquisition to immediately lift revenue growth and margins, and deliver a high single-digit return on invested capital by the fifth year.

“Overall, we think this represents a solid tuck-in acquisition within the company’s domain of expertise,” J.P. Morgan analyst Robbie Marcus said.

Montreal-based Intelerad’s revenue is growing at a low double-digit annual rate and is expected to generate about $270 million in revenue in the first full year after the deal closes, GE HealthCare said.

GE HealthCare expects the deal to close in the first half of 2026, pending regulatory approval. Intelerad’s majority shareholder, Hg Capital, and another investor, TA Associates, will fully exit their investments through the transaction.

(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Leroy Leo)