Home » News » Currently Reading:

Sage Healthcare Sold to Vista Equity Partners

September 22, 2011 News 20 Comments

image

Sage Group PLC will sell its Sage Software Healthcare unit to private equity firm Vista Equity Partners for $320 million in cash, the British company announced this morning. The sale is expected to be completed in November.

Sage CEO Guy Berruyer said in a statement, “The sale of Sage Healthcare allows management in the North American region to focus on the considerable opportunities that exist within our core U.S. customer base.”

He was also quoted as saying, “When we bought this business, we could not have predicted that the Obama administration would change the market in the way it did. This business was contracting and it had moved away from our core strategy. Our North American business has been performing less well overall. Selling the healthcare business will allow our US team to concentrate on our business priorities again.”

Sage said it will take a loss of up to $108 million on the sale of the former Emdeon Practice Services, which it acquired for $565 million in August 2006. In the most recent six-month reporting period, the healthcare division earned profits of $15 million on revenue of $111 million.

View/Print Text Only View/Print Text Only


HIStalk Featured Sponsors

     

20 Responses to “Sage Healthcare Sold to Vista Equity Partners”

Pages: [2] 1 » Show All

  1. 20
    HAS Says:

    I guess everyone knows what has happened now. Micheal Singer settled out of court, I think. It is really hard to find the case, but it is out there. I just feel sorry for the Medical Practices that took advantage of the “Discount” before it was sold.

  2. 19
    PACS Eng Says:

    Th downfall of the EMR for Webmd Prac Svcs, then Emdeon, then Sage all began with the loss of Mickey Singer. Bottom line is, the guy was a visionary. He got overtaken by corporate folks who did not have sufficient knowledge or talent necessary to run a Healthcare software business. I know, because I was there for a large portion of the beginning of the end. A good example is that I was moved from a manager who was spot on in his knowledge of the product, technical aspects, and people to a manager that could not tie her shoes with both hands and a flashlight. This was the norm. Putting non quality people in management positions was the first nail in the coffin. RIF’s on half the developers, reliance on a sales force that had little no no understanding of the products, promises to customers that were near impossible based on time/workforce…. I could go on and on. Between the three jumps, they lost or sloughed off some really high quality people. I can only hope that Vista would see the potential and pull the ashes left after the original loss of Michael Singer out of the dust and make it shine again.

  3. 18
    Hate Manual Entry Says:

    I’d agree with SciFi with cleaning up the business, and shopping it over the next 3-5 years…probably good for all involved. But I would disagree with the small shop high revenue… The larger the site, the more revenue, and easier to implement and support – they have more liklihood of an IT team, a project manager, and an internal help desk vs the small doc shop who has a nurse running clinical and back office with no time to think computers. Think the 80/20 rule. It takes 80 percent of the staff to support the small shops not the other way around. Not just a Vista issue to deal with. R&D spend would likely stay the same to keep up with Meaningful Use and other governtmental drivers. IMHO.

  4. 17
    SciFi Says:

    My fear with this sale is that Vista will clean up the books, make the core business look pretty and then shop around for a buyer. Who is Intergy’s bread and butter? Small shops, small implementations. Low cost to support in relation to the high revenue they generate. Larger implementations are most likely to be left in the lurch due to the higher R&D dollars they require.

  5. 16
    RB Says:

    I think we needed this change with the management. We the customers were frustrated with the slowness of incorporating new trends into the flagship product Intergy, which by the way, is an excellent product. Many EMR vendors have been able to land and exapand in the market is because Intergy’s lack of evolving with industry trends. If Intergy’s management had laid more emphasis on listening to the customers and incorporating the changes, I strongly believe eCW Greenway, NextGen would not have grown at this pace. Having part of the product mangement and support team offshore, incorporating new ideas provided by us (the customers) are couple major tricks missed by Intergy. I think all is not lost, fresher minds need to take over this wonderful product and approach further development with an open mind.

  6. 15
    Chris Says:

    Has anyone had experience with the Vista Equity Group in the past, those of us still working for Sage are very curious to know if our future involves a new product, new energy and a bright future, or rather to expect a sharp beheading in the salary department..

    Any thoughts…?

  7. 14
    SciFi Says:

    Just stumbled on this while researching the new owners. So, what are they going to do now? They have an archaic product which cannot be supported in a large group implementation and falls well short on the “sexiness” of competing products such as eCW.

    What next?

  8. 13
    M Lomax Says:

    Regardless of leadership failures, what should customers of SHD using their Intergy product anticipate? Health care and private practice management is getting too burdensome to have time left for quality medical care, much less worrying about software vendors interested in revenues without paying attention to care delivery.

    EHR incentives may navigate practices to vendors, but no one has yet offered an EHR product for this specialty that justifies the monetary or time expense, not to mention the headaches of following federal regulations, to accomplish these perceived goals of EHR. Don’t misunderstand me, I’m all for technology advancements and embrace fully integrated electronic records; however, there are very few dermatologists that share my opinions on EHRs.

    Until health care reform addresses the antics of insurance payors and tort reform, physician-delivered care is compromised by the restaints of federal policies.

    Don’t expect providers to spend incentive monies on products that cannot deliver quality specific to their needs or vendors that do not support their clients with successful education and training. In my opinion, the leadership that is offering HIT incentives forgot what practicing medicine is about. You’re fooling yourself if you don’t think there’s not an underlying motive in all this change. (That story for another day!)

  9. 12
    Sage Comment Says:

    Best wishes to Sage Health employees. Keep moving forward and getting it done.

  10. 11
    Pride goeth before the fall Says:

    I was not surprised to learn of the sale of Sage today as that rumor has been out there for awhile. What’s sad is to think of all the customers and employees and former employees who have been so disrespected and taken for granted over the years by a revolving door of arrogant, unmotivating, self-serving and mediocre (at best) leadership. But hey! SOMEONE hired them and perhaps they should have some accountability.
    The dollars the Obama administration pumped into the economy should have helped an EHR vendor so I hardly understand the comment “we could not have predicted that the Obama administration would change the market in the way it did”. Shouldn’t that have been their gravy train????? Sorry, I’m sticking with Lack of Strategic Leadership and Execution.

Pages: [2] 1 » Show All

Leave a Reply

Subscribe to Updates

Search


Loading

Text Ads


Report News and Rumors

No title

Anonymous online form
E-mail
Rumor line: 801.HIT.NEWS

Tweets

Archives

Founding Sponsors


 

Platinum Sponsors


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold Sponsors


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reader Comments

  • TomInStPaul: Dr Oz Special w/ IBeat - no 15-minute office visit in the package? At least he must autograph the scrubs....
  • DoWhatISayandNotWhatIDo: Also of note was that the actual PV-PQRS site where the QRUR reports crashed about 20 minutes into the call. According ...
  • PM_From_Haities: Re: The Alchemist Does your post on deleting patient data have anything to do with this scandal? http://www.cbsnews....
  • rxpete: Seems like the President of one of your big vendors (Cerner) being a board member might be a bit of a conflict of intere...
  • Honest question: Are you curmudgeon about Health 2.0 (thus no mention) or are there just too many conferences for you to have an opinion ...

Sponsor Quick Links