IBM Sells Some Watson Health Assets for More Than $1 Billion (1)

International Business Machines Corp. agreed to sell part of its IBM Watson Health business to private equity firm Francisco Partners, scaling back the technology company’s once-lofty ambitions in health care.

The value of the assets being sold, which include extensive and wide-ranging data sets and products, and image software offerings, is more than $1 billion, according to people familiar with the plans. IBM confirmed an earlier Bloomberg report on the sale in a statement on Friday, without disclosing the price.

The deal “is a clear next step as IBM becomes even more focused on our platform-based hybrid cloud and ...