IBM sells Watson Health to Francisco Partners

On January 21 2022, International Business Machines (NYSE:IBM) (“IBM”) reached a deal to sell the healthcare and data analytics assets from its Watson Health business to Francisco Partners. McMillan acted as Canadian counsel to IBM in connection with this cross-border transaction, with a team led by Brett Stewart with the support of Mikolaj Niski.

IBM, a leading global hybrid cloud and AI, and business services provider, launched Watson Health in April 2015 to offer cloud-based access to the company’s Watson supercomputer for analyzing healthcare data. Under the ownership of Francisco Partners, a leading global investment firm that specializes in partnering with technology and technology-enabled businesses, the new standalone company is called Merative, headquartered in Ann Arbor, Michigan. Merative is a data, analytics and technology partner for the global health industry – including providers, payers, life sciences companies and governments. The company helps client’s orient information and insights around the people they serve to improve healthcare delivery, decision making and performance.

 To address our client’s needs and help them stay ahead, the firm’s Mergers and Acquisition (“M&A”) Group, which provides trusted counsel to merging parties and related stakeholders across various industries, joined forces with our Private Equity & Venture Capital Industry Group. Our legal teams are skilled at structuring and closing complex deals of all shapes and sizes in Canada, the US and internationally, and providing innovative transactional advice and solutions. Our understanding of business imperatives and our relationships with the regulators helps us deliver unmatched value to our clients.