IBM Acquires Merge Healthcare for $1B to Enhance Watson Health; InfoBionic Raises $8M for Remote Patient Monitoring Platform MOME Kardia

[Today's Highlights]

○ IBM Acquires Merge Healthcare for $1 Billion
○Practo Raises $90 Million in Series C Funding, Led by Tencent
○ InfoBionic Raises $8 Million for Remote Patient Monitoring System
○NTT DATA acquires exclusive technical rights to intehealth

1. IBM Acquires Merge Healthcare for $1 Billion
On August 6, IBM announced its $1 billion acquisition of Merge Healthcare, a medical imaging software company, and integrated the latter’s medical imaging technology into IBM Watson Health, its cognitive computing division.



Merge was founded in 1987 and went public in 1998. Under this acquisition, shareholders will receive $7.13 per share in cash, representing a 31.8% premium over Merge’s closing price on May 5. John Kelly, Senior Vice President of IBM Research and Solutions, stated that Merge brings more than 20 years of established expertise in the healthcare sector, and this acquisition significantly strengthens Watson Health. Over the next decade, healthcare is expected to be one of IBM’s fastest-growing segments, which is why the company has made substantial investments to drive industry transformation and promote higher-quality services.

Now, Watson can analyze unstructured data and process large written datasets using natural language processing. However, IBM researchers estimate that medical imaging accounts for at least 90% of all healthcare data, a domain not immediately within Watson’s core capabilities. By leveraging Merge’s software and data, Watson can scan images such as X-rays, brain scans, or dermatological images, comparing them against historical image databases to detect anomalies or identify historical correlations.

IBM will continue to support Merge as an independent business, providing imaging software to healthcare providers. In fact, Merge has over 7,500 customers, including hospitals, health systems, pharmaceutical companies, and contract research organizations. These resources provide Watson Health with a streamlined and rapid path to commercialization.

This marks IBM’s third healthcare acquisition. In April, IBM acquired Phytel and Explorys, both of which are big data analytics companies. Explorys, a spin-off from the Cleveland Clinic, leverages cloud computing to detect disease and treatment patterns. Phytel has developed cloud-based tools that improve care coordination outcomes. The terms of the transaction were not disclosed. IBM has also established partnerships with Apple, Johnson & Johnson, Medtronic, and others.

2. InfoBionic Raises $8 Million for Remote Patient Monitoring System
InfoBionic, a remote patient monitoring company based in Lowell, Massachusetts, recently secured $8 million in financing, led by Safeguard Scientifics, with other investors including Excel Venture Management and Zaffre Investments. This round brings the company’s total funding to $25 million.



InfoBionic will use the funding to establish a commercialized remote patient monitoring system, MOME Kardia. MOME Kardia is designed to help patients with arrhythmia monitor their electrocardiogram (ECG), respiration, and movement. The lightweight monitoring device can be worn as a necklace or attached to a belt.

MOME transmits data to a cloud-based analytics platform to minimize false positives. The analyzed data is then sent to physicians. The device offers three monitoring modes: Holter monitoring, activity tracking, and Mobile Cardiac Telemetry (MCT). This allows physicians to remotely switch to any of these monitoring modes if they determine that a patient’s cardiac symptoms require a different type of monitoring technology.

Physicians can access patient data via the internet or iPad applications. The physician interface provides insights into patient monitoring progress and automatically generates reports incorporating multiple parameters and data points.

3. Practo Raises $90 Million in Series C Funding, Led by Tencent
According to The Wall Street Journal, Indian healthcare information provider Practo has raised $90 million in its Series C funding round, led by Tencent. Other investors include Google Capital, Sequoia Capital, Matrix Partners China, Matrix Partners, and Sequoia India, among others. This brings the company’s total fundraising to $124 million.



Headquartered in Bangalore, Practo was founded in 2008 and currently operates in three markets: India, the Philippines, and Singapore. In an interview with foreign media, Practo’s founder, Shashank ND, stated, “We are already the largest online doctor appointment platform in Asia. Currently, we have over 170,000 registered users, millions of monthly active users, and more than 10 million searches per month. Our goal is to become the sole online platform for consumers in the healthcare sector.”

Practo has two revenue streams. The first is Practo Ray, a clinic management software that requires physicians to pay a subscription fee; it helps doctors manage patient information and access electronic medical records, among other functions. The second is Practo Reach, a platform where consumers can search for information such as physicians and fees, while clinics can pay to access user inquiries.

4. NTT DATA Acquires Exclusive Technical Rights to intehealth
NTT DATA, a leading IT services provider, has announced that it has secured exclusive global rights to intehealth’s technology applications and solutions. This exclusive agreement enables NTT DATA to continue delivering leading integrated solutions that bridge gaps across multiple systems, thereby meeting the diverse needs of electronic medical record (EMR) systems.


“The healthcare industry faces significant challenges characterized by uncertainty and inefficiency. NTT DATA is focused on developing solutions that reduce costs, improve clinical outcomes, and safeguard patient information,” said Ralph Burns, Head of Healthcare and Life Sciences at NTT DATA. “The agreement with intehealth ensures that NTT DATA can continue to help healthcare payers and providers share information seamlessly, significantly enhancing interoperability. As one of the most robust cloud-based healthcare integration platforms available, intehealth Exchange will provide our customers with the benefit of exclusive access.”