GE HealthCare said Thursday that it would buy Intelerad for $2.3 billion in cash, adding to this week’s run of medtech acquisitions.
Intelerad, a medical imaging software provider for the healthcare industry, expands GE HealthCare’s inpatient presence to outpatient and ambulatory care settings. The deal is expected to close in the first half of 2026.
"As hospital and ambulatory care providers face increased demand for imaging and rising patient volumes, they are looking to simplify and unify their workflows," GE HealthCare CEO Peter Arduini said in a statement. "Our acquisition of Intelerad will bring additional cloud-enabled and intelligent solutions in radiology and cardiology into our portfolio of products and extend our capabilities into outpatient networks, enabling care teams to be more efficient, improve outcomes, and deliver precision care for patients globally.”
GE HealthCare projects Intelerad’s revenue to be about $270 million in the first full year of ownership, with approximately 90% recurring. Intelerad’s revenue is growing in the low-double-digit range annually and is expected to accelerate under GE HealthCare.
Intelerad allows GE HealthCare to expand into the outpatient enterprise imaging market, which is a $2 billion-plus opportunity, according to the announcement. GE HealthCare added that cloud-based or cloud-native solutions are expected to grow at a double-digit rate in the medium term “driven by accelerating global cloud and [Software as a Service] adoption, procedure shift to outpatient settings, and demand for integrated solutions that can increase operating efficiencies.”
J.P. Morgan analyst Robbie Marcus, in a Thursday note to investors, wrote that the acquisition is a solid tuck-in for GE HealthCare and should support the company’s strategic shift to more recurring revenue sources.
“The combined entity will offer a broader suite of cloud-enabled and AI-powered imaging solutions, spanning large academic medical centers and ambulatory networks,” he added.
Stifel analyst Rick Wise was similarly positive on the deal, writing that Intelerad “clearly checks multiple boxes positively, enhancing the [GE HealthCare] digital and recurring revenue base, expanding into a large fast-growing market, and offering immediate post-close growth and margin accretion.”
Meanwhile, BTIG analyst Ryan Zimmerman wrote that Intelerad products could be bundled into larger “enterprise wide transactions” for equipment and software. Zimmerman added that as GE HealthCare increases its use of internally developed AI algorithms within imaging, “we think it will pair well with Intelerad's suite of products over time, likely accelerating adoption.”
The proposed acquisition is the third major medtech deal announced this week, following Abbott’s proposal to buy Exact Sciences for about $21 billion and Solventum’s deal to acquire Acera Surgical.
