BURLINGTON, Vt. -- General Electric Co. said yesterday that its healthcare unit would buy IDX Systems Corp., which produces software for hospitals and doctors' offices, in a deal the companies valued at $1.2 billion.
Executives of both companies described the deal at a news conference as an ideal fit to take advantage in the rapidly expanding field of information health technology for healthcare.
''GE and IDX have just doubled the spectrum of our product line," said IDX chief executive Jim Crook.
Shareholders of South Burlington-based IDX are to get $44 a share in cash, representing a 25 percent premium over the stock's closing price on Wednesday. GE shares rose 16 cents to close at $33.65 on the New York Stock Exchange.
Separately, Chinese media reported that GE plans to buy a 7 percent stake in China's Shenzhen Development Bank. The deal, valued at $100 million, would give GE Consumer Finance a foothold in the growing personal loan market in China.
The two sides held a signing ceremony for the deal at Beijing's International Club on Wednesday, with official word of the deal expected once relevant government departments approve the deal, the state-run China Securities Journal and other newspapers reported.
GE and IDX said they expected the deal to close by early 2006, assuming approval by IDX shareholders and regulators.