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.
The sum of the parts is NOT greater than the whole!
No GE healthcare does not invest in GE Healthcare IT
Read this idiot
http://www.healthcareitnews.com/news/ge-healthcare-sells-value-based-care-division-veritas-capital-105-billion
No I did not miss the boat ...izti
found this nugget
https://hitconsultant.net/2017/11/20/ge-healthcare-wont-sell-health-business/
Never say never..
There's no need to cry over the under funded pension. PBGC is the federally run insurance agency that covers in case that milk is spilled.
So... Back to the Cows... aka Unfunded Liabilities... Any guess as to when GE will know how much milk they need to give out for all of the drinks they expect to have to pay for from the Cows they sold off and at what point if any they have to sell even bigger chunks of the company so they have enough milk?
Saw today that some stock jockey is suggesting that maybe the employees who have Pensions from GE don't get all their drinks of milk promised but that would not be fair to everyone who has set aside plans to use their uneaten cookies for the milk needed from the future pension plan and thought they were being loyal monogram milk drinkers and never expected that the former CEO JRI would use a short term extra supply of milk from the sale of Capital herds of Cows to buy up stock instead of saving up the milk for the pensions future drinks due employees.
GE Should Consider Capping Employee Pension Benefits Amid Stock Woes: Stifel...
https://www.thestreet.com/story/14543198/1/ge-should-consider-capping-employee-pension-benefits-amid-stock-woes-stifel.html
Sounds like this deal went over someone's (@SuumzwI-1xes) head. Veritas is buying part of GE, not the other way around, you dotard. This is a 100% buyout of that specific business unit. Once the deal is done, the new company will be totally owned by Veritas and have nothing to do with GE. Moreover, these is a healthcare software business. They sell to hospitals and doctors offices. It doesn't sell anything to GE. GE is not and would not be a "client" of this new business. Maybe you should educate yourself before blathering a silly, non-nonsensical diatribe.
I hope Veritas can read the fine print at the bottom of their agreement! With Businesses like this GE has a tendency to sell to other GE business units as part of their gross sales plan and marketing. GE corporate also tells the business unit you shall use this service. GE leadership gets some great idea they can spin it off to bring the $$ needed to meet their yearly sales targets by GE corporate. GE executes the deal but the new owners are stuck with a company that has 50-60% of their business with GE itself. 5 years down the road GE cuts its ties with the company they spun off because the deal stipulates they can and the business struggles to make their numbers. Good Examples ..GE Supply, GE Corporate credit cards, GE IT services (india). GE spun all these units off and their number one client was GE itself. I do not know much of the current unit "Health services IT" sells to GE healthcare itself but if I had to guess GE Healthcare is the number current client of the Veritas unit they purchased. I can tell you this GE is the hardest and biggest pain the ARSE to keep happy as a client. So..good luck Veritas. Forgot to mention the margin they show on financial statements; forget those figures ..when you start negotiating with GE Healthcare independently those margins will be reduced. Hope you factored that into your business model.
Why not spin off 49% of ownership as a public company instead of selling to bloodthirsty private equity. Would have gotten more money and maintained majority ownership
How can cows roost?
The roost would need to be massive and then I would wonder if there was a giant Griffin or even if a Roc come to life and was hunting for prey.
And now the cows have come home to roost and the milk is free.
Correction. Pension is $30 Billion not $30MM
The company will continue to need to sell assets, businesses and have additional rounds of layoffs the next many years.
There are quite a few giant sinkholes of cash.
-Technology/ Market Shifts... Renewables vs. Carbon Sources of Energy.
-Dividend... Already Cut Earlier this Year. Likely again.
-Pension... $30MM in the hole.
-Unfunded liabilities for runoff businesses especially in GE Capital... so in simplistic terms GE sold off the cows and the daily milk from the cows but still has to come up with enough milk for everyone they sold a futre drink of milk to if the cows don’t produce enough milk and no one has a good idea of how many drinks of milk are needed in the future.
Veritas was scammed!! No way VBC is worth $1Billion. Whole portfolio is in decline.