Healthcare services and information technology developer Emdeon said it has entered into a definitive agreement to sell its Tampa, FL-based Emdeon Practice Services business to Sage Software of Irvine, CA, for $565 million in cash.
Sage, a wholly owned subsidiary of the Newcastle upon Tyne, U.K.-based Sage Group, which provides business management applications to the construction, real estate, distribution, manufacturing and nonprofit industries, will be bringing its products to the North American healthcare market for the first time.
The company said that Emdeon Practice Services will form the basis for a new doctors' practice division, which it aims to grow both organically and through further acquisitions.
In connection with the transaction, Emdeon Practice Services has entered into a new agreement with Emdeon Business Services, and amended agreements with WebMD. Emdeon Business Services will continue as the exclusive provider of electronic healthcare transaction services and patient statement services for the Practices Services division through 2013. Emdeon Practice Services will continue its relationship with WebMD and will exclusively integrate WebMD's personal health record with its clinical products, including its electronic medical record.
In related news, Elmwood Park, NJ-based Emdeon said it continues to explore strategic alternatives for its Emdeon Business Services segment, and expects to announce the results of that evaluation process late this month or early next month.
Sage and Emdeon said that the closing of the deal is expected to take place this September, subject to customary regulatory conditions.
By AuntMinnie.com staff writers
August 9, 2006
Related Reading
Emdeon posts strong Q2, August 9, 2006
Emdeon delays strategic alternatives process, July 27, 2006
Emdeon revises guidance upward for Q2, June 30, 2006
Emdeon prelims show powerful Q1, April 19, 2006
Emdeon posts positive Q4, fiscal year, March 1, 2006
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