IBM’s Acquisitions of Explorys and Phytel

On April 13, 2015, IBM announced an initiative to advance the quality and effectiveness of personal healthcare by establishing a Watson Health Cloud that will provide a secure and open platform for physicians, researchers, insurers and companies focused on health and wellness solutions. To complement the Cloud’s existing capabilities, IBM also announced that it will acquire Cleveland‑based Explorys and Dallas‑based Phytel, two healthcare technology companies that are widely recognized for their leadership in applying Big Data and analytics to help improve the quality of health for individuals and large population groups.

The acquisitions of Explorys and Phytel bolster IBM’s efforts to apply advanced analytics and cognitive computing to help primary care providers, large hospital systems and physician networks improve healthcare quality and effect healthier patient outcomes. Cravath represented IBM in connection with both of these transactions. Financial terms of both deals were not disclosed.

The Cravath team advising IBM in its acquisition of Explorys was led by partner George F. Schoen and included associates Nicholas A. Dorsey, Michael L. Arnold and Andrew T. Murphy on M&A matters; partner Andrew W. Needham and senior attorney Andrew Carlon on tax matters; associate Amy C. Benford on executive compensation and benefits matters; and partner Matthew Morreale on environmental matters. Tara L. Rhoades also worked on tax matters.

The Cravath team advising IBM in its acquisition of Phytel was led by partner Minh Van Ngo and included associate David J. Benhamou on M&A matters; partner Andrew W. Needham and foreign associate attorney Timur G. Celik on tax matters; senior attorney Lawrence A. Pasini and associate Sarah W. Colangelo on executive compensation and benefits matters; and partner Matthew Morreale on environmental matters.