Healthcare IT firm Allscripts has inked a definitive agreement to acquire fellow software developer Eclipsys in a stock swap valued at approximately $1.3 billion.
The acquisition aims to bring together Allscripts' physician office and acute care systems with Eclipsys' enterprise offerings for hospitals and health systems. The combined company's client base would include more than 180,000 U.S. physicians, 1500 hospitals, and nearly 10,00 nursing homes, hospices, home care, and other postacute organizations, according to Allscripts of Chicago and Eclipsys of Atlanta.
Allscripts CEO Glen Tullman will be the CEO of the combined firm, while Eclipsys president and CEO Phil Pead will serve as chairman.
Under the terms of the merger agreement, Eclipsys shareholders would receive 1.2 shares of Allscripts stock for each share of Eclipsys stock. That exchange represents a 19% premium over the June 8 closing price.
The deal is subject to stockholder approvals from both companies and other customary closing conditions and regulatory approvals. Also, it's subject to the completion of a secondary offering of Allscripts shares owned by Allscripts majority stockholder Misys and the completion of Allscripts buyback from Misys of additional shares that will substantially reduce Misys' share ownership prior to closing of the deal.
The companies expect to close the merger in approximately four to six months.
Related Reading
Eclipsys posts Q1 results, May 5, 2010
Eclipsys debuts mobile Sunrise apps, March 1, 2010
Eclipsys Q4 revenues up, February 19, 2010
Merge inks Allscripts deal, August 3, 2009
Misys, Allscripts complete merger, October 15, 2008
Allscripts, Misys Healthcare to merge, March 18, 2008
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