IBM Watson Health renamed as Merative

USA – IBM Watson Health’s data and analytics assets has now officially entered the fold of private equity firm Francisco Partners and rebranded as a standalone company called Merative.

The deal, first inked in January, closed just as the second quarter closed, as anticipated. No details about the purchase consideration were given in January nor now, but it is rumored that IBM pocketed around US$1 billion for the deal.

Merative brings together market-leading offerings that deliver value across the global healthcare ecosystem, serving clients in life sciences, provider, imaging, health plan, employer, and government health and human services sectors.

Headquartered in Ann Arbor, Michigan, Merative will be led by Gerry McCarthy, whom Francisco Partners brought in from eSolutions, one of its portfolio companies.

The firm’s offering will be organized into six product families – Health Insights; MarketScan; Clinical Development; Social Program Management and Phytel; Micromedex, and Merge Imaging solutions – and commercialized to various players in the healthcare ecosystem.


The private equity firm said it will provide Merative with significant resources and opportunities for new investment, acquisitions, partnerships, and growth.

Additional funding for Merative will come from two other PE investors, True Wind Capital and Sixth Street.

Merative brings together market-leading offerings that deliver value across the global healthcare ecosystem, serving clients in life sciences, provider, imaging, health plan, employer, and government health and human services sectors.

The investment, which include True Wind Capital and Sixth Street, will provide Merative with resources and opportunities for new investment, acquisitions, partnerships, and growth.

McCarthy has been in healthcare information technology for 30 years, most recently serving as CEO of eSolutions, a Francisco Partners portfolio company, which exited to Waystar in October 2020.

Prior to eSolutions, he was the President of TransUnion Healthcare and an executive at McKesson.

Paul Roma, General Manager of the Watson Health business, will be transitioning to Senior Advisor to Francisco Partners.

3M divests its assets

Another notable divestiture has come from 3M Company. The company recently entered into an agreement to sell its Neoplast and Neobun brands, along with related assets in Thailand and some other Southeast Asian countries, to Selic Corp Public Company Limited as part of its strategic portfolio management.

3M will also divest the manufacturing assets of its Ladlumkaew, Thailand, facility to Selic Corp.

Neoplast and Neobun brands are part of 3M’s Consumer Health & Safety Division (CHSD), including sports and medical tapes, bandages and medicated products for the consumer and healthcare industry.

These brands, which make skin health and wellness products, are sold primarily in Thailand and Southeast Asia.

By exiting these businesses, 3M intends to focus on its core areas within the CHSD.

As previously announced, 3M will shut down its Ladlumkaew plant by August end. This will affect around 250 employees in Thailand. Those impacted will be eligible for severance and outplacement assistance.

The divestiture of the Neoplast and Neobun brands is expected to be completed in the fourth quarter of 2022, and is not likely to have a material impact on 3M’s financial results.

3M has lately been focused on restructuring its portfolio to enhance shareholder value. In fourth-quarter 2021, the company inked a deal to divest its food safety business.

In March 2022, it sold its floor care products business. The successive divestments are expected to help 3M focus on its core business areas and drive growth.

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