GE to Invest $500 Million in Healthcare Unit

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Picture Source: Reuters

John Flannery, chief executive of GE Healthcare, confirmed that his company plans to invest $500 million (€467 million) over the next three years in digitalizing its operations but was not considering any IPO involving the subsidiary.

Mr. Flannery, in an exclusive interview with Handelsblatt, said GE Healthcare plans to hire additional software and data specialists, and the unit could purchase a data analysis firm to strengthen its internal platforms more quickly.

The chief executive said GE Healthcare plans to expand its market share in Germany, despite rival Siemens’ planned flotation of Healthineers.

GE Healthcare wants to expand its product offerings in Germany and around the world, Mr. Flannery said. This will have consequences for the German market, he added.

But Mr. Flannery said GE has no plans to follow Siemens lead and list its healthcare unit on the stock market.

“It is our basic belief that we will grow faster within GE than outside of GE,” he said.

For years, GE Healthcare has tried in vain to challenge Siemens’ dominance in Germany. The unit employs 54,000 people and generated $18.4 billion in revenue last year.

Read the full interview in Tuesday’s Handelsblatt Global.

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