Allscripts announced this morning that it will acquire Eclipsys for $1.3 billion in an all-stock transaction. Misys PLC, the 55% owner of Allscripts, also announced that it will sell most of its interest in the company to allow the acquisition to proceed, reducing its holdings to less than 10% of the merged companies.
The proposed transaction values Eclipsys at $1.3 billion, a 19% premium to Tuesday’s closing share price.
Allscripts CEO Glen Tullman will serve as CEO of the new company, while Eclipsys CEO Phil Pead was named as its chairman.
Tullman was quoted in the announcement as saying,
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. Our vision and the vision behind ARRA is to leverage information technology to create collaboration between providers in all care settings, helping to improve the quality and lower the cost of care. The merger of Allscripts and Eclipsys creates one company with the scale, breadth of applications and client footprint to bring that vision to life by connecting providers in hospitals, physician practices and post-acute organizations across the country.
The deal is expected to close in 4-6 months.
The companies will hold a webcast at 8:00 this morning Eastern time, open to all here or by telephone at (877) 666-7021.
Rumor of the merger was reported on HIStalk on April 12 by Thad.