U.S. diversified manufacturer 3M Co (NYSE: MMM) said on Thursday it was exploring a sale or spinoff of its health-care data and software business.
The decision comes as Chief Executive Officer Inge Thulin reviews 3M's broad business portfolio, which includes Post-it notes as well as adhesives, abrasives and other products for a variety of industries. At the same time, the company has struck acquisition deals to expand in other areas.
The health-care technology business has become more competitive as companies and the U.S. government raise spending as regulatory requirements increase.
Xerox Corp said in July that it would exit some government health information systems businesses, including managing state Medicaid systems, and focus on higher-margin healthcare areas.
Cognizant Technology Solutions Corp earlier this year purchased U.S. healthcare IT services provider TriZetto Corp for $2.7 billion U.S., pushing its second-quarter healthcare revenue up 39%.
3M Health Information Systems, a unit of the company's healthcare business, had trailing 12-month revenue of about $730 million U.S., according to 3M.
The health information systems business provides healthcare data aggregation, analysis and strategic services. It counts more than 5,000 hospitals as among its customers along with government clients.
3M shares faded 45 cents to $140.41 U.S., within a 52-week trading range of $130.60 to $170.50 U.S.
