Nov 20 (Reuters) - GE HealthCare ( GEHC ) said on

Thursday it will acquire medical imaging software provider

Intelerad for $2.3 billion in cash as the medical device maker

seeks to expand into outpatient care markets.

The deal gives GE HealthCare ( GEHC ), whose equipment are prominent

in hospitals, access to Intelerad's cloud-based medical imaging

software and other solutions that are used by outpatient care

clinics.

Outpatient enterprise imaging presents an attractive

high-growth, $2 billion-plus opportunity for the company

worldwide, GE HealthCare ( GEHC ) said.

Intelerad also offers products through a

software-as-a-service model, helping GE HealthCare ( GEHC ) significantly

increase its recurring revenue.

"As GEHC pushes to increase use of internally developed AI

algorithms within Imaging, we think it will pair well with

Intelerad's suite of products over time, likely accelerating

adoption," BTIG analyst Ryan Zimmerman said.

The medical device maker expects Intelerad's acquisition to

immediately lift revenue growth and margins, and deliver a high

single-digit return on invested capital by the fifth year.

"Overall, we think this represents a solid tuck-in

acquisition within the company's domain of expertise," J.P.

Morgan analyst Robbie Marcus said.

Montreal-based Intelerad's revenue is growing at a low

double-digit annual rate and is expected to generate about $270

million in revenue in the first full year after the deal closes,

GE HealthCare ( GEHC ) said.

GE HealthCare ( GEHC ) expects the deal to close in the first half of

2026, pending regulatory approval. Intelerad's majority

shareholder, Hg Capital, and another investor, TA Associates,

will fully exit their investments through the transaction.