Eagan, Minn. – October 12, 2026 -- Solventum (NYSE: SOLV) said it intends to separate its Health Information Systems business, a healthcare software unit with $1.4 billion in annual sales, and is targeting completion within 12 to 18 months.
The move is the latest step in the company's three-phase transformation strategy. Solventum's Board of Directors and management expect the separation to leave a dedicated MedTech company focused on its MedSurg and Dental Solutions businesses.
Solventum weighs independent, combined or other deal structures
The company is evaluating several separation alternatives: an independent company, a combination with a scaled player in the space, or another transaction. It said it will pursue the structure it believes maximizes shareholder value.
No decision has been made on the final structure or timing, and the company cautioned there is no assurance a separation will occur. Any deal would require approval by Solventum's Board, regulatory clearances and other customary conditions.
Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC are financial advisors, and Cleary Gottlieb Steen & Hamilton LLP is legal counsel.
Health Information Systems reaches more than 75% of U.S. hospitals
The unit's solutions are deployed in more than 30 countries and used by over 75% of U.S. hospitals. Built on more than 40 years of medical coding expertise, it processes about 660 million clinical documents monthly.
Its revenue cycle management, performance management and clinician productivity software is sold under long-term contracts and embedded in the workflows of health systems, physician practices and government payers.
The business operates in an addressable market of roughly $10 billion, which Solventum estimates is growing 5-6% annually. The company cites the unit's proprietary rules engine, data assets and AI-driven autonomous coding as differentiators.
Solventum targets autonomous coding, international expansion and M&A as growth levers
As a standalone entity, Health Information Systems would gain strategic focus, operational agility and capital allocation flexibility, according to Solventum. Planned priorities include wider adoption of autonomous coding, entry into international markets modernizing their payment systems, and partnerships and acquisitions.
The unit would be run by a dedicated management team with full control over strategic direction and resource allocation.
For the remaining company, Solventum said a streamlined portfolio would let it direct capital toward opportunities with the greatest potential for growth, profitability and return on invested capital.
Chief Executive Bryan Hanson said the company has moved with urgency on portfolio optimization, a core pillar of its transformation strategy.
Solventum discusses separation on second-quarter earnings call at 4:30 p.m. ET
Solventum released its second-quarter fiscal 2026 results in a separate statement. It will discuss those results and the proposed separation with investors on a conference call at 4:30 p.m. Eastern Time, with a webcast and replay on its investor relations website.