GE HealthCare to acquire Intelerad in $2.3B Deal, expanding cloud and AI imaging portfolio

GE HealthCare said it will acquire medical imaging software company Intelerad for $2.3 billion in cash, a move the company says will significantly expand its cloud-based and AI-enabled imaging capabilities across hospital and outpatient settings.

The acquisition, announced Thursday, represents one of GE HealthCare’s largest bets on digital transformation since becoming an independent company. Executives said the deal will help triple the company’s cloud-enabled product offerings by 2028 as health systems face growing imaging demand, rising patient volumes and mounting pressure to streamline workflows.

“As hospital and ambulatory care providers face increased demand for imaging and rising patient volumes, they are looking to simplify and unify their workflows,” said Peter Arduini, president and CEO of GE HealthCare. “Our acquisition of Intelerad will bring additional cloud-enabled and intelligent solutions in radiology and cardiology into our portfolio … enabling care teams to be more efficient, improve outcomes, and deliver precision care for patients globally.”

Montreal- and Raleigh-based Intelerad is a major provider of enterprise imaging and workflow software, with a particularly strong presence in outpatient and ambulatory care settings. Its cloud-first imaging systems for radiology and cardiology complement GE HealthCare’s traditional strength in hospital-based imaging hardware and software.

By bringing the two companies together, GE HealthCare said it aims to create a “comprehensive, cloud-first and AI-enabled imaging offering” that spans large academic medical centers, community hospitals, and fast-growing outpatient imaging networks.

“Intelerad is an outstanding strategic fit and is a pioneer in cloud-based imaging software,” said Roland Rott, president and CEO of Imaging at GE HealthCare. “By combining GE HealthCare’s medical device and AI competence at global scale with Intelerad’s enterprise cloud and imaging expertise, we will be even better positioned to meet the evolving needs of healthcare providers, simplify complex workflows, and drive digital innovation across the industry.”

Jordan Bazinsky, CEO of Intelerad, said joining GE HealthCare represents “an exciting new chapter” for the company and its customers. “GE HealthCare’s global scale and extensive relationships with key decision makers across hospital systems will fuel the expansion of our connected imaging software offering,” he said.

Expanding Reach Into a $2 Billion Market

GE HealthCare said the integration of Intelerad will extend its reach into the high-growth outpatient imaging market, estimated at more than $2 billion globally. Cloud-based and cloud-native imaging solutions are expected to grow at a double-digit rate over the next several years as procedure volumes shift to outpatient environments and providers seek more efficient, integrated systems.

The acquisition also accelerates GE HealthCare’s transition toward a software-as-a-service (SaaS) model. Intelerad generates roughly 90% of its revenue from recurring sources and is expected to produce about $270 million in revenue during its first full year under GE HealthCare, with EBITDA margins above 30%. The company’s revenue currently grows at a low-double-digit annual rate.

GE HealthCare said the deal will be immediately accretive to its top-line growth and adjusted EBIT margin once it closes, though it may be slightly dilutive to adjusted earnings per share in the near term due to financing costs. The company expects to offset that impact with cost efficiencies and projects a high-single-digit return on invested capital within five years.

Path to Closing

The transaction is expected to close in the first half of 2026, pending regulatory approvals and other customary conditions. GE HealthCare plans to finance the acquisition with cash and debt.

Executives said the integration of Intelerad will further GE HealthCare’s evolution from a traditional device-focused company into a broader provider of connected, AI-enabled healthcare solutions.

“Together, we look forward to advancing digital innovation in health care and delivering more integrated AI-enabled solutions that empower our customers to tackle their greatest challenges,” Bazinsky said.