Allscripts Sells Its Hospitals and Large Physician Practices Business to Harris

Allscripts will sell its Hospitals and Large Physician Practices business segment to Canada-based Harris for up to $700 million in cash.

The segment includes Sunrise, Paragon, TouchWorks, Opal, Star, HealthQuest,and DbMotion. Its 2021 revenue was $928 million. Allscripts will retain Practice Fusion, Professional, and Veradigm.

The companies expect the deal to close in Q2.

Harris is a subsidiary of Toronto-based, publicly traded Constellation Software, which acquires and operates mission-critical software companies with strong recurring revenue. It has sold just one of its 500 acquisitions in its history of more than 25 years. It historically has paid below-market rates for its acquisitions, 0.8 times annual sales, which is the value of this acquisition. It typically runs businesses under their own brand identity and leaves management intact. Constellation’s market cap is nearly $40 billion.

Some of the healthcare software units of Harris are Iatric Systems, QuadraMed, Ingenious Med, Obix by Clinical Computer Systems, and Picis.