GE nears digital business deal, sources say
13 September 2018 - 12:00 am UTC
General Electric [NYSE:GE] is in advanced discussions to sell assets in its GE Digital unit to a domestic buyer, said six sources familiar with the situation.
The Boston-based industrials conglomerate is working with JPMorgan as it evaluates options for the business, the sources said. One of the sources said the sale process has been ongoing for around six months.
GE, three of the sources said, has been conducting a limited sale process with only a select number of participants. Its GE Digital unit was a major initiative to develop software for the so-called internet of things (IoT), but it has yet to generate profits and will require considerable restructuring to unlock value, three of the sources said.
It remains unclear if GE Digital will be sold as a whole or whether a partial stake will be sold. Several of the sources said GE has been in talks with a strategic buyer. This summer GE Digital struck a partnership with Microsoft [NASDAQ:MSFT].
GE, Softbank and JPMorgan declined comment.
by Bhavna Kaul in New York, Deborah Balshem in Fort Lauderdale, Jay Antenen in New York and Mai Mizuta in Tokyo
