CHICAGO – GE HealthCare Technologies Inc said on Tuesday it has agreed to acquire medical imaging software provider Intelerad Medical Systems in a $2.3 billion all-cash deal, bolstering its digital offerings amid a shift toward cloud-based healthcare solutions.
The acquisition, one of the largest in the medical imaging software sector, aims to combine GE HealthCare’s strength in hospital-based imaging with Intelerad’s leading footprint in outpatient and ambulatory care settings. The move accelerates GE HealthCare’s strategy to triple its cloud-enabled product portfolio by 2028.
“As hospital and ambulatory care providers face increased demand for imaging, they are looking to simplify their workflows,” said GE HealthCare President and CEO Peter Arduini. “Our acquisition of Intelerad will bring additional cloud-enabled and intelligent solutions… enabling care teams to be more efficient.”
The deal allows GE HealthCare to tap into the high-growth, $2 billion-plus outpatient enterprise imaging market. Cloud-native solutions in this segment are expected to grow at a double-digit rate, driven by increasing adoption of software-as-a-service (SaaS) and a shift of medical procedures to outpatient facilities.
GE HealthCare expects Intelerad to contribute approximately $270 million in revenue in its first full year, with about 90% of it recurring. The company stated the transaction will be immediately accretive to its adjusted earnings before interest and taxes (EBIT) margin upon closing, which is anticipated in the first half of 2026.
While the deal will be slightly dilutive to adjusted earnings per share in the short term due to financing costs, GE HealthCare plans to offset this with cost efficiencies and projects a high-single-digit return on invested capital by the fifth year.
Privately-held Intelerad, founded in Montreal in 1999, provides diagnostic imaging and workflow software used by over 1,500 healthcare organizations. Its majority owner, Hg Capital, and investor TA Associates will fully exit their investments as part of the transaction.
GE HealthCare, which was spun off from General Electric in early 2023, intends to fund the purchase with cash on hand and debt financing. The deal is subject to customary regulatory approvals.
Jordan Bazinsky, Chief Executive Officer at Intelerad, said: “This marks an exciting new chapter for Intelerad and our customers. By joining GE HealthCare, we can combine our innovative, cloud-based imaging solutions with GE’s global reach and scale. We’re grateful to Hg for their strategic support over the past five years. Together we’ve made major strides in product innovation, executed eight acquisitions, and expanded into new customer segments. This has given us a strong foundation for this next step in our journey with GE Healthcare as we accelerate our vision for a truly connected ecosystem for clinicians and improve patient care through smarter, faster, and more collaborative technology.”
Hg has also supported Intelerad across product innovation – including the launch of InteleGence, Intelerad’s AI platform; eight strategic acquisitions – substantially broadening its product suite into a comprehensive enterprise imaging platform that includes radiology, cardiology, mammography, image exchange, and image storage; and with investment in Intelerad’s leadership and operational scale – recruiting and strengthening the management team and enabling the company’s next phase of growth.
Hector Guinness and Laura Grattan, Partners at Hg, commented: “Our partnership with Intelerad has been an outstanding journey of innovation, growth, and leadership in healthcare technology. We are incredibly proud of what the team has achieved and are confident that joining GE HealthCare will allow Intelerad to continue expanding its impact on global healthcare delivery.”
Dr Katherine Wiles, Principal at Hg, added: “The digital transformation of healthcare is accelerating, driven by intelligent software that connects clinicians, patients, and data. Intelerad has been at the forefront of this shift, enabling faster, more informed clinical decisions through innovation and integration. I’m delighted to have supported that mission and I’m excited to see how the combination of Intelerad’s imaging software expertise and GE’s commitment to innovation continues to drive improved patient outcomes.”
For GE HealthCare, Evercore is serving as financial advisor and Sidley Austin LLP as deal counsel. For Intelerad, UBS Investment Bank is serving as exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as deal counsel.