Francisco Partners completes buyout of IBM’s Watson Health business

• Merative is a data, analytics and technology partner for the global health industry
• Gerry McCarthy will lead Merative
• Deutsche Bank served as financial advisor to Francisco Partners while Kirkland & Ellis LLP served as legal advisor

Francisco Partners has closed its previously announced buyout of IBM’s Watson Health business. No financial terms were dislcosed.

Under the ownership of Francisco Partners, the new standalone company will be called Merative and be headquartered in Ann Arbor, Michigan.

Merative is a data, analytics and technology partner for the global health industry.

Gerry McCarthy has been tapped to lead the new organization. Most recently, he was CEO of eSolutions, a Francisco Partners portfolio company, which exited to Waystar in October 2020. Prior to eSolutions, McCarthy was the president of TransUnion Healthcare and an executive at McKesson.

“Merative has market leading products, top clients and talented leadership,” said McCarthy in a statement. “With the commitment, support and deep experience of Francisco Partners, we will invest heavily in expanding the reach of these products as we continue to work with clients to improve healthcare delivery, decision making and performance.”

Paul Roma, general manager of the Watson Health business, will be transitioning to senior advisor to Francisco Partners.

True Wind Capital and Sixth Street are investing in Merative. True Wind Capital is a San Francisco-based private equity firm focused on investing in leading technology companies.

Deutsche Bank served as financial advisor to Francisco Partners while Kirkland & Ellis LLP served as legal advisor.
Francisco Partners backs technology and technology-enabled businesses. Since its launch over 20 years ago, Francisco Partners has invested in over 400 technology companies. Currently, it has more than $45 billion in assets under management.