Initiate's software helps integrate data from multiple systems and locations. It is used at more than 2400 sites and more than 40 health information exchanges.
Clients include the Alberta Ministry of Health and Wellness, BMI Healthcare (UK), and North Dakota's Department of Health and Human Services.
"With the addition of Initiate's software and its industry expertise, IBM will offer clients a comprehensive solution for delivering the information they need to improve the well-being of patients at a lower cost," said Arvind Krishna, general manager, information management, IBM.
"Similarly, our government clients will now have even more capabilities for gathering and making use of information to serve citizens in a timely and efficient manner," added Krishna.
Subject to closing conditions and regulatory clearance, the deal should be completed during the current quarter.
Financial details of the proposed transaction were not disclosed.