Will IBM be allowed to acquire Truven? 4 things to know

Armonk, N.Y.-based IBM wants to acquire Chicago-based Truven Health Analytics, according to Seeking Alpha. However, regulators may not approve this purchase due to its creation of an oligopoly.

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Here are four things to know:

1. The IBM acquisition of Truven would combine a giant amount of healthcare data, causing anti-competition concerns.

2. IBM’s more than 100 million patient records combined with Truven’s data on 200 million patients would establish the largest healthcare database.

3. The proposed deal will turn a watchful eye from the Federal Trade Commission. In addition, privacy advocates may want to consider what the acquisition would mean for healthcare data security.

4. IBM proposed to pay a 23 percent EBITDA margin for Truven.

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