IBM to Buy Merge Healthcare in Billion Dollar Deal

IBM (IBM) has announced that it will spend $1 billion to acquire Merge Healthcare (MRGE), a maker of health software.

ibm-merge-healthcareIBM’s buying of Merge Healthcare will grant MRGE shareholders $7.13 per share, which is a 32% premium of the stock’s price. The equity part of the deal between the two companies is reported to be at $713.1 million, reports Reuters.

IBM is buying Merge Healthcare so that it can combine it with its Watson Health division. This will allow Watson to take advantage of MRGE’s software to better its abilities in the field of health, Reuters notes.

IBM also recently teamed up with CVS (CVS) to combine their health information. This endeavor includes using Watson to help monitor chronic illnesses in CVS patients and members of its benefits plan.

More From InvestorPlace

Article printed from InvestorPlace Media,

©2022 InvestorPlace Media, LLC