IBM explores sale of IBM Watson Health



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International Business Machines Corp. is exploring a potential sale of its IBM Watson Health business, according to people familiar with the matter, as the tech giant’s new CEO sets out to streamline the business and become more competitive in cloud computing.

IBM is exploring alternatives for the unit which could include a sale to a private equity firm or industry player or a merger with a blank check company, the people said. The unit, which uses artificial intelligence to help hospitals, insurers and drugmakers manage their data, has annual revenue of around $ 1 billion and is currently unprofitable, have said people.

Its brands include Merge Healthcare, which analyzes mammograms and MRIs; Phytel, which helps in communication with patients; and Truven Health Analytics, which analyzes complex health data.

It’s unclear how much the business could make in a sale, and there may not be.

IBM, with a market value of $ 108 billion, has been left behind as cloud computing rivals Microsoft Corp. and Amazon.com Inc. achieve more than 10 times higher ratings. The Armonk, NY company said it was focusing on strengthening its hybrid cloud operations while leaving some unrelated businesses.

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