WASHINGTON, April 2 (Xinhua) -- General Electric (GE) on Monday agreed to sell a portion of its healthcare business to Veritas Capital, a private equity firm, in a deal of 1.05 billion U.S. dollars as GE Chief Executive Officer John Flannery streamlines operations.
Veritas Capital will acquire the Enterprise Financial Management, Ambulatory Care Management and Workforce Management assets comprising GE Healthcare's Value-Based Care Division for 1.05 billion dollars in cash, the companies said in a statement.
Kieran Murphy, President & CEO of GE Healthcare, said "we're confident this business will flourish under Veritas Capital, while GE Healthcare will continue to significantly invest in core digital solutions, such as smart diagnostics, connected devices, AI and enterprise imaging, that will drive precision health for our customers."
The sale is Flannery's latest effort to streamline operations and sharpen the focus at GE after he took the helm of the 126-year-old company last year. GE also plans to spin off or sell its century-old train business.
The stock price of the Boston-based manufacturer slid 45 percent last year and has dropped by about 23 percent since the beginning of this year.