23 Feb

Truven: IBM’s Latest Buy, Attempt to Push Watson

WRITTEN BY Anne Shields FEATURED IN M&A and Event Driven

Truven, IBM’s latest billion-dollar acquisition

On February 18, 2016, IBM (IBM) announced the acquisition of Truven Health Analytics for $2.6 billion. Truven provides cloud-based healthcare data and analytics, and IBM intends to integrate Truven’s Health medical claims data and methodology with its Watson Health Cloud. With Truven under its wing, IBM’s Watson will have access to more than 8,500 clients that span across US federal and state government agencies, health plans, employers, hospitals, clinicians, and life sciences companies.
Truven: IBM’s Latest Buy, Attempt to Push Watson

Truven, the 4th acquisition intended for IBM’s Watson

Truven is the fourth acquisition IBM has made in an effort to enhance the capabilities of its Watson Health Cloud. Watson Health Cloud, which launched in April 2015, is an open source platform that enables care providers and researchers to share and analyze health data. Prior to Truven, IBM acquired Merge Healthcare for $1 billion. Merge Healthcare provides the software for managing and processing medical images.

Apart from Merge Healthcare, IBM announced the acquisition of Phytel and Explorys to boost its Watson Health Unit in 2015. Phytel builds and develops cloud-based tools to augment care coordination and outcomes. Explorys, a spin-off of the Cleveland Clinic, is a cloud-based data analytics company that uses cloud computing to identify patterns and trends in treatments and diseases.

In the past, to further push the chances of its Watson’s success in healthcare space, IBM announced partnerships with Apple (AAPL), Johnson & Johnson (JNJ), and Medtronic (MDT) in an effort to leverage the information gathered from personal health devices. Investors interested in gaining exposure to IBM can consider investing in the SPDR S&P 500 ETF (SPY), which has an exposure of 8.7% to application software and invests ~0.7% of its holdings in IBM.

Now let’s go deeper into the details of the Truven buyout.

Latest articles

After being listed on the NASDAQ (QQQ) on March 29, Lyft (LYFT) stock has traded on a negative note so far.

23 Apr

Coca-Cola Stock Rises on Impressive Q1 Results

WRITTEN BY Sharon Bailey

Coca-Cola (KO) impressed investors with better-than-expected revenue and earnings for the first quarter.

23 Apr

Why Microsoft Bought Express Logic

WRITTEN BY Rachel Gunter

Microsoft (MSFT) announced this month that it had acquired a San Diego startup called Express Logic for an undisclosed amount.

Spirit Airlines is scheduled to report its first-quarter results on April 25. The airline has an impressive record of beating earnings estimates.

On April 23 before the market opened, legacy motorcycle maker Harley-Davidson (HOG) reported its first-quarter earnings results.

Williams Companies (WMB) is scheduled to release its first-quarter earnings on May 1 after the market closes.