Portions of GE Healthcare’s Caradigm sold to Imprivata

Lexington, Massachusetts-based health IT security firm Imprivata has acquired the identity and access management business of Caradigm, a population health company run by GE Healthcare.

John Flannery, CEO of General Electric and former head of GE Healthcare, said during a call with analysts over the company’s disappointing third quarter earnings that the company would shed more than $20 billion in assets in the next few years.

“We know what the issues are. We know what we need to do to fix them, and I'd characterize this as largely a self-help story,” Flannery said. “From here forward, we reset the company for a better future.”

Imprivata said the acquisition of Caradigm’s business on multi-factor authentication, governance and risk management would “accelerate development of new capabilities” to make healthcare providers more productive while reducing the security risk and cost of IT for hospitals and integrated health systems.

“We are excited about this acquisition, for the quality of people, solutions, services, and customer base, Imprivata will work closely with Caradigm in the future.” Gus Malezis, president and CEO of Imprivata, said in a statement. “This acquisition will serve as a catalyst in expanding our market reach and our authentication and access management portfolio and allow us to expand our relationship with GE Healthcare.”

Caradigm’s population health business isn’t part of the deal, the company said in a press release.

“We view Imprivata’s acquisition of the Identity and Access Management business as a very positive transition—making both companies stronger. Caradigm will continue with its intense focus on population health management and predictive analytics,” said Neal Singh, president and CEO for Caradigm.