Veritas Capital

Veritas Capital is a private investment company.

History

2022: Purchase of educational and scientific literature publisher Houghton Mifflin Harcourt

In mid-February 2022, private investment company Veritas Capital bought Houghton Mifflin Harcourt. The deal amounted to $2.8 billion. More details here.

2021: Athenahealth Medical Software Developer Sale

At the end of November 2021, it became known about the sale of the developer of health software to Athenahealth investment companies. The deal amounted to $17 billion. Athenahealth is also buying venture capital companies Bain Capital Hellman & Friedman from investment giants Veritas Capital and Evergreen Coast Capital. By the end of November 2021, Athenahealth is partnering with more than 140,000 outpatient care providers in all 50 states USA and on more than 120 specialties to accelerate the pace of health innovation and support existing clinical and financial outcomes. More. here

2020: Veritas Capital builds Gainwell Technology based on DXC Technology

In mid-September 2020, private investment company Veritas Capital acquired the medical business of DXC Technology (this group includes Luxoft) for $5 billion and announced that after the close of the transaction on October 1, a new company called Gainwell Technology will be created on its basis . More details here.

2018

Purchase of medical software developer Athenahealth for $5.7 billion

On November 12, 2018, the medical developer ON Athenahealth officially announced that it was being bought by private investment company Veritas Capital and hedge fund Elliott Management. More. here

Renaming GE Healthcare IT to Virus Health Technologies

On October 9, 2018, Veritas Capital announced the renaming of Value-Based Care Solutions Group, a division purchased from GE Healthcare. It was called Virus Health Technologies.  More details here.

GE Healthcare IT-Business Purchase for $1.05 Billion

In early April 2018, GE Healthcare announced the sale of its IT-Business to Veritas Capital. With this deal, one of the world's largest manufacturers of medical equipment increases its focus on equipment for "smart" diagnosis of patients and network devices, reports Reuters.

The IT division that sells GE Healthcare includes software assets in the field of financial management of the company (Enterprise Financial Management) and personnel (Workforce Management), as well as IT solutions for outpatient care (Ambient Care Management). We are mainly talking about technologies for managing administrative IT functions and working processes in hospitals.

GE Healthcare sold IT-Business for $1.1 billion

Veritas Capital buys this GE Healthcare business for $1.05 billion. The entire amount will be paid from its own funds, that is, without transferring shares. It is planned to close the deal in the third quarter of 2018.

GE Healthcare expects that the sale of IT assets will improve the range and receive funds for acquisitions on the market.

In addition, the deal is in line with the strategy of new General Electric (GE) chief executive John Flannery, who led the company in June 2017. In February 2018, he said that the corporation needs to get rid of non-main business areas for reorganization, and the first batch of sold assets worth $4 billion has already been selected.

In total, it is planned to get rid of assets of $20 billion in order to improve financial performance. In particular, GE is going to sell the transport division (produces railway locomotives) and the business of producing light bulbs and other lighting products. The cost of GE Healthcare is estimated at $19 billion by early April 2018.

Analyst at JPMorgan Chase & Co. Steve Tusa believes that GE will lose $1.5-2 billion in free cash flow as a result of the sale of $20 billion in assets. At the end of 2018, GE expects a cash flow of $6-7 billion.

The company, under his leadership, will continue to invest in major digital healthcare solutions such as smart diagnostics, connected devices, artificial intelligence and some other developments, according to GE Healthcare Chief Executive Kieran Murphy.

Kieran Murphy noted that after the Veritas Capital deal, GE Healthcare will continue to develop tools for data analysis, advanced medical imaging, management of medical images and control centers.

The press release cites the words of Veritas President Ramzi Musallam, who says that his company sees a "huge opportunity" to invest in the business bought from GE Healthcare and the corresponding market, which is $9 billion.

Our team has a lot of knowledge and experience in the field of IT medicine, and acting as an independent business under the Veritas wing, we will get the opportunity to breathe new life into our product portfolio and make additional purchases to better serve patients, suppliers and customers, said John Zimmerman, Vice President and General Manager of Value-Based Care Solutions at GE Healthcare.

Morgan Stanley and Keval Health are financial advisers to GE Healthcare in a deal with Veritas Capita, while Goldman Sachs & Co. and William Blair & Co advised Veritas Capital.

After the announcement of the sale of the IT-Business to GE Healthcare, the shares of the conglomerate General Electric fell by 2.6% on Monday, April 2, 2018. 12 months earlier, company quotes fell by more than 20%.^[1]

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