Chicago-based Allscripts and Misys Healthcare Systems of Raleigh, NC, a wholly owned subsidiary of Misys Plc in London, have signed a definitive merger agreement.
The transaction is designed to enhance Allscripts' position in the healthcare information technology market, primarily in electronic health records and practice management segments.
Under the proposed transaction, Misys Healthcare would merge with a wholly owned subsidiary of Allscripts. Misys Plc would contribute $330 million in cash to Allscripts, for which it will receive shares representing a 54.5% ownership position in the new entity.
Allscripts would pay a special cash dividend of $330 million, or approximately $4.90 per share, to Allscripts stockholders immediately prior to the transaction's completion. Allscripts stockholders also would retain the shares they currently own.
Plans are for the current Allscripts management to head the new company. Current Allscripts CEO Glen Tullman would continue in that position, as would current chief financial officer Bill Davis. Misys chief executive Mike Lawrie would serve as executive chairman.
In its 2007 fiscal year (end-May 31), Misys Healthcare had revenues of approximately $376 million and profit (before exceptional items) of approximately $39.5 million.
The combined company would have a client base of approximately 150,000 U.S. physicians and 700 hospitals. It also could achieve annual pretax cost savings of $15 million to $20 million in the first full year following the close of the transaction, increasing to total annual cost savings of $25 million to $30 million in the following years.
Related Reading
Misys launches new EMR package, October 25, 2007
Misys aligns with iMedica, August 28, 2007
QuadraMed bids to buy Misys CPR assets, July 24, 2007
Allscripts lands New Mexico contract, March 21, 2007
Allscripts integrates devices into TouchWorks and HealthMatics, February 26, 2007
Emageon partners with Allscripts, Vital Images, February 26, 2007
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