IBM buys Initiate Systems

One of the most successful small companies (Initiate) to ever sell software into the Canadian healthcare IT market is being swallowed by Big Blue. I remember watching these guys sew up the provincial client registry market back in 2006. This looks like a good deal for both parties.  IBM gets a very good specialist health-IT company to strengthen their product pipeline, and Initiate gets the reach of IBM.

The impact for the Canadian eHealth market appears to me to be more strategic. IBM will now have a very important seat at the table when it comes to provincial eHealth infrastructure and strategy. I expect to see IBM winning more follow on work at a provincial level…not because of new products from Initiate, but because they are IBM and they now have the seat at the table and the ear of the powers that be.


One response to “IBM buys Initiate Systems

  1. I think that IBM’s acquisition is a sign of what is to come. Major eHealth investments across the world make healthcare a hot spot in otherwise lacklustre IT market. Companies such as IBM have retained sufficient profits that they can afford to make acquisitions to fuel continued growth.

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