General Electric

GE Selling Off Healthcare Unit for $1 Billion

GE Healthcare Life Sciences
Boston Globe via Getty Images

General Electric is selling off one of its healthcare units for over $1 billion.

According to CNBC, Veritas Capital, a private equity firm, plans to acquire a healthcare technology unit from GE.

Veritas will buy GE's revenue-cycle, ambulatory care and workforce management software unit -- which includes the value-based care division -- for $1.05 billion in cash.

Veritas CEO Ramzi Musallam said in a statement that the firm sees a "tremendous opportunity" to invest in the business and the $9 billion healthcare market.

The healthcare division of GE is worth $19 billion. Kieran Murphy, CEO of GE Healthcare, said that the unit will continue to "significantly invest" in core digital solutions like smart diagnostics and artificial intelligence.

The deal, which is expected to close in the third quarter, is part of the reshaping efforts of CEO John Flannery. He's been under pressure to make changes since taking over last summer, with the GE stock price down 20 percent from this time last year.

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