GE HealthCare announced that it has entered into an agreement to acquire Intelerad, a global provider of medical imaging software, in a $2.3 billion all-cash transaction. The acquisition is aimed at strengthening GE HealthCare’s cloud-based and AI-driven imaging capabilities, with the company targeting a threefold expansion of its cloud-enabled offerings by 2028.
Intelerad delivers imaging and digital workflow solutions with a strong presence in outpatient and ambulatory care. Its cloud-first platforms support radiology and cardiology across both inpatient and outpatient environments. GE HealthCare said Intelerad’s extensive outpatient footprint will complement its own established position in hospital-based imaging, enabling a comprehensive, cloud-first, AI-enabled portfolio that serves academic medical centers as well as growing ambulatory networks.
The acquisition is also expected to help GE HealthCare expand into a fast-growing market segment valued at over $2 billion.
Financial and Strategic Outlook
GE HealthCare projects that Intelerad will generate approximately $270 million in revenue during its first full year post-acquisition, with about 90% coming from recurring sources. The company expects annual low-double-digit revenue growth, with continued acceleration once Intelerad is fully integrated.
At closing, the acquisition is anticipated to immediately enhance GE HealthCare’s top-line growth and adjusted EBIT margin. However, adjusted EPS may see a slight short-term dilution due to financing costs—something the company plans to mitigate through operational efficiencies. GE HealthCare expects to achieve a high-single-digit return on invested capital within five years.
The transaction is targeted for completion in the first half of 2026.
Market Reaction
BTIG analysts Ryan Zimmerman and Iseult McMahon reiterated a Buy rating for GE HealthCare following the announcement. They noted that the acquisition strategically strengthens the company’s recurring revenue base.
According to the analysts, Intelerad’s software suite can be integrated into larger enterprise-wide deals involving both equipment and software. They added that as GE HealthCare continues to expand the use of its proprietary AI algorithms in imaging, the combination with Intelerad’s platform is likely to drive faster adoption across care settings.
