IBM Buying Ann Arbor Health Analysis Firm For $2.6 Billion

ANN ARBOR — The Watson Health business unit of Armonk, N.Y.-based IBM (NYSE: IBM) announced plans to acquire Truven Health Analytics, an Ann Arbor-based provider of healthcare data analysis. The purchase price was $2.6 billion.

Truven has about 2,500 employees, roughly 750 of them at the Ann Arbor headquarters, Truven spokeswoman Ariana Nikitas said. And, she said, “this is a growth acquisition, so there are no changes planned at this time” to the Ann Arbor office or its staffing level.

Truven will bring more than 8,500 clients, including U.S. federal and state government agencies, employers, health plans, hospitals, clinicians and life sciences companies to the IBM Watson Health portfolio.

Upon completion of the acquisition, IBM’s health cloud will house one of the world’s largest and most diverse collections of health-related data, representing an aggregate of approximately 300 million patient lives acquired from three companies. IBM plans to integrate Truven’s extensive cloud-based data set spanning hundreds of different types of cost, claims, quality and outcomes information with its existing data sets.

Through the Watson Health Cloud, healthcare organizations will be able to take previously disparate data sets, including vast amounts of unstructured data, and combine them together to create unique insights that help inform a broad range of health decisions.

Truven Health Analytics represents IBM’s fourth major health-data related acquisition since launching the Watson Health unit in April 2015. The others were Phytel, a Dallas, Texas-based population health management services provider; Explorys, a Cleveland-based healthcare data analytics firm; and Merge Healthcare, a Chicago medical imaging provider.

Data and insights from Truven inform benefit decisions for one in three Americans. Upon close, the acquisition of Truven will bolster Watson Health to more than 5,000 employees, including hundreds of clinicians, epidemiologists, statisticians, healthcare administrators, policy experts and healthcare consultants who will join the IBM business unit.

Truven’s cloud-based technology, methodologies and health claims data will be integrated into the Watson Health Cloud over time.

“The Truven Health Analytics team is eager to combine our capabilities and expertise with the Watson Health portfolio,” said Mike Boswood, President and CEO, Truven Health Analytics. “This will help catapult the industry forward to transform healthcare and to save and improve lives.”

The deal is projected to close later this year, subject to satisfaction of customary closing conditions and applicable regulatory reviews.

IBM says Truven and its other health care analytics businesses will help providers move beyond the era of being paid for services rendered ot being paid for quality outcomes at lower cost.

IBM Watson Health clients include Apple, Medtronic, Johnson & Johnson, Novo Nordisk, and CVS Health.

Truven Health Analytics is headquartered in Ann Arbor,  with offices in California, Colorado, Georgia, Illinois, Indiana, Maryland, Massachusetts, New York, North Carolina, Ohio, Pennsylvania and Tennessee in the United States, as well as international offices in Canada, Mexico, Belgium, the United Arab Emirates, Germany, Turkey, England, France, Spain, Italy, Poland, Switzerland, Brazil, Argentina, China, India, South Korea, Singapore, Australia and Japan.

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