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Allscripts, Misys Healthcare to Merge

March 18, 2008 News 24 Comments

Misys announced this morning in London that it will spin off its US-based Misys Healthcare Systems and merge it with Allscripts, paying $330 million in cash for a 54.5% stake in the combined entity through a complex financing arrangement that also involves hedge fund ValueAct Capital, which will underwrite a new share placement to finance the transaction.

Glen Tullman of Allscripts will remain CEO, while Misys CEO Mike Lawrie will become chairman of the board. Misys will appoint six board members, with four from Allscripts. Allscripts shares will continue to trade under the MDRX ticker and the new company’s headquarters will be in Chicago.

The announced name of the new company is Allscripts-Misys Healthcare Solutions Inc.

Misys shares are up 20% on the London Stock Exchange.

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Currently there are "24 comments" on this Article:

  1. Talk about your Frankenstein-type merger. Motley assortment of systems and services. It is going to take at least 6 months (probably closer to a year) to even really begin to get things sorted out.

    So many questions abound but can this new company get its act together fast enough to even preserve a decent slice of their combined market share?

    Also have to wonder if the overall stock market continues to take a beating and other health IT stocks are depressed that other moderate to large health IT companies will also be forced to either merge/get bought out over the next 12 months and at what pace will this occur? I say yes but I would have to follow the most recent fiscal reports more closely to make some more educated guesses. I do know the stuff I have seen from the equity analysts who cover health IT stocks are largely crap though compared to other IT sectors.

  2. Is this like the “merger of equals” we heard when Daimler-Benz took over Chrysler? That worked out well…..

  3. If they can provide great support for all of it interfacing, this could be some pretty good news for customers of both companies.

    I had to laugh a little though when I first heard about this 🙂

  4. I don’t know about this. I was part of Sunquest when Misys took over and look what they eventually did to them. It can only go downhill for Allscripts if Misys gets their hands on them.

  5. What a mess. 10 dfferent PM (legacy+new) systems – 5 different EMRs – TW, HealthMatics, Misys EMR, iMedica, Amicore. 2 companies that fiercely competed w/ each other. McConnell supposedly resigning from the Board. Why would you buy Allscripts until this deal shakes out? Allscripts stock is being valued at $4.86/share based on closing price from yesterday. I’m anxious to hear the Tullman spin for analysts.

  6. This is actually an incredibly good deal for Allscripts. shareholders. They get $4.9 in cash, 45.5% of Allscripts (worth about $4.12 at present) and 45.5% of Misys. Here’s the math:

    Current stock price: $9.06
    minus cash dividend $4.90
    minus 45.5% Allscripts $4.12

    equals

  7. Sorry didn’t finish last comment:

    equals: 4 cents.

    So, Allscripts shareholders are get a 45.5% stake in Misys HC for 4 cents!!!!!

  8. Does anyone really believe that this merger will be successful? No offense but the early adopters have adopted and the market is presently tapped out. The current solutions that are in the marketplace (including those of Allscripts, Misys, Nextgen, iMedica, Medinotes-aka Bond, Cerner, etc) are not what the market as in health care providers want. When is the HIT vendor marketplace going to wake up and realize that you DO NOT have the right to lower my productivity level, expect me to lose revenue, disrupte both my and my staff professional and personal lives to adopt technology that does not and will not adapt to our workflow or how we practice medicine. When was the last time that your great software engineers spent any real time in a medical office to see and expereince what actually happens? Why is it that I have to alter the way I do business so that you can sell a prodcut that I really do not need or want. Wake up and look around and you will soon realize whyt he EHR adoption rate is where it is and why it will stay there.

  9. I may only be an EHR specialist, but from what I’ve seen Unknown, the products you mentioned can and do work. In fact, half of them are highly customizable so that you can adapt them to your workflow. All I can figure is that you’ve either seen crappy demos or are just wayyyyy too attached to old, inefficient procedures. Implementing an EHR is by no means a cakewalk for anyone, but if an organization makes it their directive to follow through with it, they should see benefits.

    As for the success of this merger, sure, it can work… Misys has proven that they’re good at buying well developed products. AllScripts will couple well with their Vision, PM, and maybe Tiger packages (though the Tiger folks will probably want iMedica MyWay since it would be more scaled to their size). I think the key will be offering a high level of support for all of these products and their interfaces, and then to also make sure the development of the good ones continues.

  10. Other than being 5 years too late, not a bad deal. Skelton should be ashamed every day for how he ran down the company and ran out some great people.

  11. Mat,

    Keep drinking the kool aid, one day you will wake up and realize the world passed you by. This deal stinks and you know it, just admit it, no one is buying the sales bs

  12. unknown: LOL

    I’m a Vision customer dude, so the chance to get All Scripts for less money with interface support (and even better not get Misys EMR) is actually a pretty SWEET deal. Excuse me if I’m a little jazzed about what it might do for my organization.

    Try finding a ‘Mat’ in sales with either company… I bet you won’t.

  13. Sorry but you previously posted “I may only be an EHR specialist” thus one can easily and safely conclude that your either and highly likely a Misys koolaid drinker or one from Allscripts….

  14. ?

    Who do you think supports EHRs in MIS departments around the nation? EHR Specialists… that’s generally what people call the job (sometimes application specialist, or system analyst, but it’s generally the same).

    PS: It’s you’re… as in a contraction of ‘you’ and ‘are’. So I might say something like “YOUR grammar is horrible”, and then you might respond to me with “Well, you’re being a grammar nazi”. 😉

  15. Tis really is not a gud news to ppl working in Misys.
    Thr r ppl who r bonded wid the company and the product for several years.
    Its wud have been a better option for the company but not for its employees.
    Misysians… so still wait for wht… Come out atleast now and start a good career guys

    urs,
    wellwisher

  16. I am a physician interested in a new PM system with the possibility of converting to EHR. I have used A4’s Healthmatics and was informed they are no longer enhancing or developing it (but they sure as heck want their usual $2,700.00/year maintenance fee- for WHAT????). They WILL NOT STATE when they are going to completely discontinue support of Healthmatics. In the meanwhile, I must hold tight and hope that there are no “necessary” updates to the software for electronic billing success, that will affect my business

    Any opinions / experience with the multitude of PM / EHR systems out there? It’s overwhelming to say the very least. Is there a more related blog someone could link me to?

    Rumor has it that the gov’t is going to mandate conversion to EHR by 2010…anyone aware whether or not this is true?

    Being a solo practitioner dealing with reduced insurance re-imbursement rates and the possibility of having to convert to electronic medical records (the expense and training)…has me very concerned.

    Any comments are appreciated.

  17. Dr C. Not sure where you got your info from about not updating Ntierprise. A4 had an old PM that they sunsetted and they migrated everyone to Ntierprise. As far as new releases there have been quite a few this past year. EMR recieved one in Dec one in MArch and a major update was just released GA for EMR this past week. These need similar updates for Ntierprise to work so they are still updating both products. Ntierprise is also used with Touchworks as well as Healthmatics office. Ntierprise and Helathmatics EMR have received considerable R&D money and updates/improvements over the past year as well as the past few months since the announcement of the merger. Not sure where you got your info that Ntierprise was not going to be updated.

  18. EMR Dude, thanks for commenting…however I have not migrated to Ntierprise. I am still operating the original A4Healthmatics PM software.

    I am interested in researching other PM software programs besides Allscripts.

  19. Dr. C – I have no idea how long you have had your existing system but it sounds like more than 5 years. In this day and age, that is a lifetime! I think it is unrealistic to expect any vendor to continue developing and supporting any software product forever. Sounds like there is no rush to change if the product is meeting your needs, however. If you do change, don’t expect the next product will endlessly serve your needs.

  20. Mrs. Cannon,

    I suppose I had no idea as to the lifetime of a given software product. After the initial investment, I would think a product could be updated for quite some time and the maintenance fee would cover the expense., or an additional fee could be charged, without requiring another significant “software purchase” fee and the stress of transferring all information and learning a new product. Being a physician, I am not at all savvy about such things and am learning daily!

    I appreciate your input.

  21. Anyone know how this will impact employees of Allscripts? I heard rumors on another blog that Allscripts in Burlington will get hit hard by layoffs? Any truth to that?

    With so many products and the rush to seal this deal, I think it will be difficult to convince potential customers to stick it out.







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