General Electric has spun out part of its health care business, selling the Value-Based Care Division for $1.05 billion to private equity firm Veritas Capital.
The Boston-based company announced the plan Monday, bringing GE’s (NYSE: GE) Enterprise Financial Management, Ambulatory Care Management and Workforce Management businesses — which are all under the umbrella of the $19 billion GE Healthcare — to the New York firm.
Its GE Healthcare business, once based in Waukesha, has numerous Milwaukee-area operations that employ about 6,000 locally.
The transaction is slated to close during the third quarter of 2018.
“By operating as a stand-alone business under Veritas’ ownership, we now have the opportunity to further revitalize our product portfolio and pursue complementary acquisitions to better serve patients, providers and payers,” said Jon Zimmerman, vice president and general manager of Value-Based Care Solutions at GE Healthcare. “With Veritas’ support and resources, we are excited to continue deepening our commitment and capabilities to help health care providers manage their financial, clinical and employee workflows across the continuum of care.”
The company did not immediately respond to questions about the number of employees that will be affected and their locations.
GE’s shares were down about 2.5 percent as of 11:30 a.m. Monday, on par with a broader selloff in the markets over potential trade concerns.