IBM announces Initiate buy in health play

IBM has agreed to purchase data management specialist Initiate Systems.

The company said that it would wrap up the deal for the Chicago-based software firm by the end of the quarter. Terms of the deal were not disclosed.

Initiate specialises in the development of software applications which manage patient information for pharmacies and hospitals. The applications include tools to manage and share medical records between health care facilities.

Following completion of the deal, IBM said that it plans to integrate Initiate into its Cognos and InfoSphere enterprise platforms. Additionally, the deal will help bolster the company's business analytics and consulting services.

IBM is hoping that the deal will help to bolster its offerings for the government and health care sectors and help its products retain compliance with medical data protection standards.

"With the addition of Initiate's software and its industry expertise, IBM will offer clients a comprehensive solution for delivering the information they need to improve the well-being of patients at a lower cost," said IBM general manager for information management Arvind Krishna.

"Similarly, our government clients will now have even more capabilities for gathering and making use of information to serve citizens in a timely and efficient manner."