Private equity investment firm Veritas Capital has signed an agreement to acquire GE Healthcare’ value-based care division for $1.05bn in cash.

Under the deal, Veritas will acquire the value-based healthcare division’s assets, including enterprise financial management (revenue-cycle, centricity business), ambulatory care management (centricity practice solution) and workforce management (formerly API Healthcare).

Veritas Capital also recently invested in Truven Health Analytics and Verscend Technologies, as part of its efforts to expand its presence in healthcare technology sector.

Subject to customary closing conditions and regulatory approvals, the deal is expected to complete during the third quarter of this year.

 Goldman, Sachs and William Blair & Company are serving as financial advisors, while Schulte Roth & Zabel is acting as legal counsel to Veritas Capital in the deal.

GE Healthcare value-based care solutions general manager and vice president Jon Zimmerman said: “Our team has significant knowledge and expertise in the healthcare IT space, and by operating as a standalone business under Veritas’ ownership, we now have the opportunity to further revitalize our product portfolio and pursue complementary acquisitions to better serve patients, providers and payers.”

Veritas Capital CEO and managing partner Ramzi Musallam said: “We see a tremendous opportunity to invest in this business and partner with management to take advantage of a $9 billion market that continues to benefit from favorable sector trends, particularly a real and urgent need to digitalize our healthcare system.”

In 2016, NeoGenomics acquired GE Healthcare's Life Sciences business unit Clarient and its wholly-owned subsidiary Clarient Diagnostic Services, for around $275m.

Clarient Diagnostic Services provides comprehensive cancer diagnostic testing to hospitals, physicians and the pharmaceutical industry.

Veritas Capital invests in companies that offer critical products and services, primarily technology and technology-enabled solutions, to government and commercial customers across the globe.

The firm invests in various sectors such as aerospace & defense, healthcare, technology, national security, communications, energy, government services and education industries.

Image: Veritas Capital to acquire GE Healthcare’s value-based care division. Photo: courtesy of General Electric.