GE Healthcare Technologies (GEHC.US) has agreed to acquire medical imaging software provider Intelerad Medical Systems Inc. for $2.3 billion in cash, aiming to strengthen its position in cloud-based software and artificial intelligence (AI). Following the announcement, GE Healthcare's stock remained largely unchanged in after-hours trading in New York. Year-to-date, the stock has declined 4.4% as of Thursday's close.

The medical imaging sector is undergoing transformation as companies increasingly adopt AI-assisted image analysis. Intelerad's software is widely used in radiology and cardiology, with a strong presence in outpatient care—a segment that complements GE Healthcare's hospital-focused business.

Intelerad generates most of its revenue from recurring subscription services, with annual growth in the mid-teens. GE Healthcare projects that Intelerad will contribute approximately $270 million in revenue in its first full fiscal year post-acquisition. The deal is expected to drive steady growth in both total revenue and adjusted EBIT. However, factoring in financing arrangements, adjusted earnings may face a "slight dilution" in the near term, though cost-cutting measures are anticipated to mitigate this impact.

GE Healthcare, spun off from General Electric (GE) in 2023, specializes in medical imaging and patient monitoring equipment. This marks its largest acquisition since becoming an independent company.

Founded in 1999 in Montreal, Intelerad operates in the U.S. and Canada as a privately held firm. The transaction, funded through existing cash and debt financing, is expected to close in the first half of 2026.

Evercore served as GE Healthcare's financial advisor, with Sidley Austin LLP providing legal counsel. UBS Investment Bank advised Intelerad, while Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel for the deal.