According to multiple media reports, sources have reported that General Electric Co. (GE) is exploring selling off its transportation business and all or parts of its healthcare information technology business.
A Wall Street Journal article cites sources who say the Boston-based company is exploring options for the GE Transportation division, one of its oldest businesses. “GE is also seeking a buyer for part or all of its healthcare information technology business, known as Centricity, people familiar with the matter said,” according to the WSJ article.
The potential move could be part of new CEO John Flannery’s plans to divest more than $20 billion worth of assets in the next two years.
GE’s healthcare IT business provides software and technology tools for medical records and image management as well as human resource and payroll services. A Reuters article states, “GE’s healthcare IT business, which would likely have to be broken up into separate chunks in the event of a sale, assists with electronic medical records, healthcare workforce management, and hospital revenue cycle management. Some of its better-known brands include API Healthcare, which it acquired in 2014, and Centricity EMR.”
The business is part of GE’s sprawling healthcare business, which had revenue last year of $18.3 billion and spans magnetic imaging, medical diagnostics and drug discovery, the Reuters article reports.
What’s more, Reuters article states, “GE is looking to bounce back after what Flannery earlier this month called horrible results in the third quarter. He has argued that GE’s strong businesses are being held back by others that ‘drain investment and management resources without the prospect for a substantial reward.’”