April 2, 2018 / 4:27 PM / 6 months ago

GE Healthcare to sell IT unit to Veritas for $1.05 billion

(Reuters) - General Electric Co’s (GE.N) healthcare unit said on Monday it would sell its information technology business to private equity firm Veritas Capital for $1.05 billion in cash as it sharpens its focus on smart diagnostics and connected devices.

FILE PHOTO - The ticker and logo for General Electric Co. is displayed on a screen at the post where it is traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S. on June 30, 2016. REUTERS/Brendan McDermid/File Photo

The information technology business houses its financial management, ambulatory care and workforce management software assets, GE said in a statement.

The transaction is expected to close during the third quarter of 2018.

GE said in February it had a “line of sight” on the first $4 billion in asset sales under its plans for $20 billion in disposals, as it tries to shore up its financial performance.

As part of the plan, the company is looking to sell its transportation unit, which makes railway locomotives and the iconic lighting division that makes bulbs for consumers.

Morgan Stanley and Keval Health are GE’s financial advisers, while Goldman Sachs & Co. and William Blair & Co advised Veritas Capital.

Shares of the U.S. industrial conglomerate were down 2.6 percent at $13.14 in line with the broader Dow Jones Industrial Average .DJI which fell 2 percent on Monday.

Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D'Silva

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