Healthcare IT firm Allscripts is all set to buy rival Eclipsys in $1.3 billion deal. Allscripts majority owner, British software company Misys will cut its 55%stake in Allscripts to about 10% and return more than $1 billion to investor.
HEALTHCARE IT firm Allscripts is all set to buy rival Eclipsys in $1.3 billion deal. Allscripts majority owner, British software company Misys will cut its 55%stake in Allscripts to about 10% and return more than $1 billion to investor. The news of the multi-billion-deal, which will make Allscripts leader in electronic healthcare, helped its shares to gain18% on Wednesday.
As per deal Eclipsys investor will receive 1.2 Allscripts shares for each of their shares. The new enlarged group’s client base will include over 180,000 doctors, 1,500 hospitals and nearly 10,000 nursing homes. The move will make it better positioned to access $30 billion in federal funds for the adoption of electronic healthcare records.
Glen Tullman, Allscript Chief Executive, said in statement, “We are at the beginning of what we belive will be the fastest transformation of any industry in U.S. history.” Glen will head the the merged company and Eclipsys CEO Phill Pead will become chairman of the combined group.
Tullman added, “The merger of Chicago based Allscripts and Atlanta based Eclipsys would create a company uniquely positioned to capitalized on the move to electronic record.”
Misys, which merged its healthcare business with Allscripts Healthcare Solutions in October 2008, putting about $700 million of cash and assets in the Nasdaq-listed company, said it would focus on its banking software business.
After selling its stake in highly overvalued business Misys shares hit a 6-1/2 year high as analysts welcomed the effective break-up of the group.
Misys will sell about 68 million Allscripts shares to raise over $1.3 billion via a placing and through buybacks by Allscripts. It will return money to its shareholders via a tender offer later in the year.