GE Healthcare (GEHC.US) makes a bold move to acquire Intelerad for $2.3 billion, aiming for a new frontier in AI and cloud-based medical imaging.

GE Healthcare Technologies (GEHC.US) will acquire medical imaging software manufacturer Intelerad Medical Systems Inc. for $2.3 billion in cash to expand its presence in the cloud software and artificial intelligence fields. After the announcement of the deal, GE Healthcare's stock price remained virtually unchanged in after-hours trading in New York. As of Thursday's close, the stock has fallen by 4.4% since the beginning of the year. With companies using artificial intelligence to assist in interpreting scan images, the medical imaging industry is undergoing a transformation. Intelerad's software is used in radiology and cardiology, holding a significant position in outpatient care GE Healthcare says this will complement the company's presence in the hospital sector. Intelerad generates most of its revenue from recurring subscription services, with revenue growing at a rate of over ten percent annually. GE Healthcare expects Intelerad to generate around $270 million in revenue in the first full fiscal year after the acquisition. This deal is expected to drive robust growth in total revenue and adjusted earnings before interest and taxes (EBIT) for the group. It is worth noting that, due to factors related to financing arrangements, short-term adjusted earnings may face a "slight dilution" impact, but this impact is expected to be significantly mitigated through systematic cost-cutting measures. The above financial forecasts and strategic arrangements have been confirmed through formal disclosure procedures by the company. GE Healthcare was spun off from GE Aerospace (General Electric) in 2023, focusing on medical imaging and patient monitoring equipment. According to data, this is the largest acquisition the company has made since becoming independent. Intelerad is a private company founded in Montreal in 1999, with operations in the United States and Canada. Funding for the transaction will come from existing cash and debt financing and is expected to be completed in the first half of 2026. Evercore is serving as financial advisor to GE Healthcare, while Sidley Austin LLP is acting as the legal advisor for the transaction. UBS Investment Bank is serving as financial advisor to Intelerad, with Skadden, Arps, Slate, Meagher & Flom LLP acting as the legal advisor for the transaction.