GE HealthCare is acquiring medical imaging software provider Intelerad for $2.3 billion in cash, a major move to push beyond hospital hardware and into the growing outpatient market with cloud-based, AI-driven software, as reported by Healthcare IT News. The acquisition is a clear pivot toward a more stable, recurring-revenue SaaS model.
Connecting the clinics: The strategic rationale is clear: GE HealthCare’s hospital-based imaging business gets a direct line into Intelerad’s extensive network of outpatient clinics, creating what the companies call a more comprehensive, "cloud-first and AI-enabled imaging offering." The deal is a direct shot at tackling a major headache for healthcare providers: overloaded workflows and ever-increasing patient demand for imaging.
The recurring revenue play: Financially, the transaction accelerates GE HealthCare’s shift to a Software as a Service model. Intelerad is expected to generate approximately $270 million in revenue in its first year, with about 90% of that being recurring—a key metric for stable, predictable income. The deal is slated to close in the first half of 2026.
A solutions provider play: The purchase advances GE HealthCare’s strategy to triple its cloud-enabled product offerings by 2028. "We expect to accelerate our growth in SaaS products and recurring revenues as we take another evolutionary step to grow into a healthcare solutions provider," said GE HealthCare CEO Peter Arduini.
This acquisition is less about buying a product and more about buying a business model. GE HealthCare is trading a large chunk of cash for a foothold in the high-growth outpatient market and, more importantly, a stream of predictable, subscription-based software revenue. The move comes amid a flurry of M&A activity, with the GE deal being one of three major medtech acquisitions announced in the same week, including Abbott's massive $21 billion proposal to buy Exact Sciences.
