US healthcare IT provider Allscripts to buy rival Eclipsys for $1.3 billion
09 Jun 2010
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AllscriptsMisys Healthcare Solutions Inc, a provider of IT software solutions for physicians, today signed a deal to buy its rival in the same business Eclipsys Corporation, for $1.3 billion.
Chicago, Illinois-based Allscripts provides IT solutions to more than 160,000 physicians, 800 hospitals and nearly 10,000 post-acute and homecare organisations in the US.
Chicago-based Allscripts, formerly known as Allscripts Healthcare Solutions, is engaged in the business of providing electronic health records, practice management, revenue cycle management, document management and electronic prescribing.
In October 2008, Allscripts merged with Misys Healthcare of the UK and formed Allscripts-Misys Healthcare Solutions, and now operates in two product lines, physician practice solutions and hospitals and care management.
The healthcare providers in clinics, post-acute care facilities, and homecare agencies utilize Allscripts solutions to automate and connect their clinical and business operations. More than 160,000 physicians, 800 hospitals and nearly 10,000 post-acute and homecare organisations in the US, use its services.
With 2009 revenues of $548 million, Allscripts employs about 2,500 people in more than 20 locations across the US.
Georgia-based Eclipsys provides advanced integrated clinical, revenue cycle and performance management software, clinical content and professional services that help healthcare organisations improve clinical, financial and operational outcomes.
Founded in 1986, Eclipsys had revenues of $548 million in 2009.
Under the deal, which has been approved by the board of Eclipsys, stockholders of Eclipsys will receive 1.2 shares of Allscripts for each share of Eclipsys, a 19 per cent premium based on the 8 June 8closing price.
The merged company will have a combined client base of over 180,000 physicians, 1,500 hospitals, and nearly 10,000 nursing homes, hospices, home care and other post-acute organisations in the US.
Allscripts expects over $100 million in cost savings over the first three full fiscal years after completion of the transaction.
Allscripts will buy back from Misys plc, which owns majority shares in Allscripts, which will reduce Misys's share ownership to 10 per cent of the combined company, said Allscripts in a statement.
Glen Tullman, CEO of Allscripts, will be the CEO of the combined company, while Phil Pead, president and CEO of Eclipsys will become chairman of the combined company.
The merger will help its clients to more effectively access the approximately $30 billion in federal funding for hospital and physician adoption of Electronic Health Records provided by the American Recovery and Reinvestment Act, said Allscripts.
"We are at the beginning of what we believe will be the single fastest transformation of any industry in US history, and the combination of the Allscripts Electronic Health Record portfolio in the physician office and leadership in the post-acute care market, with Eclipsys's market-leading hospital enterprise solution creates the one company uniquely positioned to execute on this significant opportunity," said Tullman.
Chicago, Illinois-based Allscripts provides IT solutions to more than 160,000 physicians, 800 hospitals and nearly 10,000 post-acute and homecare organisations in the US.
Chicago-based Allscripts, formerly known as Allscripts Healthcare Solutions, is engaged in the business of providing electronic health records, practice management, revenue cycle management, document management and electronic prescribing.
In October 2008, Allscripts merged with Misys Healthcare of the UK and formed Allscripts-Misys Healthcare Solutions, and now operates in two product lines, physician practice solutions and hospitals and care management.
The healthcare providers in clinics, post-acute care facilities, and homecare agencies utilize Allscripts solutions to automate and connect their clinical and business operations. More than 160,000 physicians, 800 hospitals and nearly 10,000 post-acute and homecare organisations in the US, use its services.
With 2009 revenues of $548 million, Allscripts employs about 2,500 people in more than 20 locations across the US.
Georgia-based Eclipsys provides advanced integrated clinical, revenue cycle and performance management software, clinical content and professional services that help healthcare organisations improve clinical, financial and operational outcomes.
Founded in 1986, Eclipsys had revenues of $548 million in 2009.
Under the deal, which has been approved by the board of Eclipsys, stockholders of Eclipsys will receive 1.2 shares of Allscripts for each share of Eclipsys, a 19 per cent premium based on the 8 June 8closing price.
The merged company will have a combined client base of over 180,000 physicians, 1,500 hospitals, and nearly 10,000 nursing homes, hospices, home care and other post-acute organisations in the US.
Allscripts expects over $100 million in cost savings over the first three full fiscal years after completion of the transaction.
Allscripts will buy back from Misys plc, which owns majority shares in Allscripts, which will reduce Misys's share ownership to 10 per cent of the combined company, said Allscripts in a statement.
Glen Tullman, CEO of Allscripts, will be the CEO of the combined company, while Phil Pead, president and CEO of Eclipsys will become chairman of the combined company.
The merger will help its clients to more effectively access the approximately $30 billion in federal funding for hospital and physician adoption of Electronic Health Records provided by the American Recovery and Reinvestment Act, said Allscripts.
"We are at the beginning of what we believe will be the single fastest transformation of any industry in US history, and the combination of the Allscripts Electronic Health Record portfolio in the physician office and leadership in the post-acute care market, with Eclipsys's market-leading hospital enterprise solution creates the one company uniquely positioned to execute on this significant opportunity," said Tullman.
