Allscripts announced on Wednesday that it had entered into an agreement with Toronto-based Constellation Software’s N. Harris Computer Corporation to acquire the net assets of the electronic health record vendor’s hospital and large physician practices business segment.
The segment includes Allscripts’ Sunrise, Paragon, TouchWorks, Opal and dbMotion tools.
The assets of Allscripts Veradigm analytics and intervention portfolio will not be included in the transaction.
“We have been watching and admiring the hospitals and large physician practices franchise for many years,” said Harris CEO Jeff Bender in a statement. “We believe that we are the perfect forever home for the many talented employees and loyal customers that are the backbone of the franchise.”
WHY IT MATTERS
Allscripts’ Sunrise, Paragon and TouchWorks EHR platforms are aimed at serving a variety of organizations, including community health systems. Its Opal technology is a digital health record software used in more than 100 Australian hospitals. And its health interoperability tool dbMotion allows clinicians to access patient data via disparate EHR systems.
“The medical industry we faithfully serve has gone through tremendous change and the needs of the customers in our different business segments continue to evolve in different ways,” said Allscripts CEO Paul M. Black in a statement. ”We think this transaction maximizes focus as well as future opportunity for our clients, our more than 7,500 associates and our shareholders.
“We are pleased that our solutions will be a key strategic component of Harris’ plans to [become] leaders in digital health,” he added. “As the cornerstone in the Harris portfolio, we are proud that our customers will continue to benefit from a true platform of health.”
Harris could pay up to $700 million for the assets, with a fixed price of $670 million at closing, with contingent consideration of up to $30 million based on performance of the business for two years afterward.
The transaction, which is subject to regulatory approval and customary conditions, is expected to close during Q2 of 2022.
“We are excited to begin the next chapter in our Harris story, continuing to serve those who serve us in the communities where we live, by partnering with healthcare professionals to deliver care that improves lives,” said Bender.
THE LARGER TREND
News of the sale follows Allscripts’ sell-off last year of 2bPrecise, which specializes in aggregating genetic and genomic data from electronic health records in order to further precision medicine initiatives, to AccessDX.
The acquisition is another example of a fast-shifting EHR marketplace. The news recalls the joint sale, also this past year, of EHR vendor athenahealth to affiliates of Bain Capital and Hellman & Friedman.
And, of course, Oracle’s move to purchase Cerner in a blockbuster $28 billion deal has continued to draw interest from industry analysts and clients since the news broke in December 2021.
Market leader Epic, meanwhile, drew top marks once again this past month, for the 12th year running, in the annual Best in KLAS awards.
ON THE RECORD
“Allscripts has a long and rich history of providing solutions to healthcare organizations,” said Harris Group President for Healthcare Jerry Canada. “Harris is excited to welcome the staff and customers that helped make Allscripts a success in the hospitals and large physician practices segment. We believe that the employees and customers of both organizations will benefit from the possibilities created by this forever relationship.”
Kat Jercich is senior editor of Healthcare IT News.
Twitter: @kjercich
Email: [email protected]
Healthcare IT News is a HIMSS Media publication.
Source: Read Full Article