Allscripts, Misys Healthcare to form new company

I'm sure everyone by now has heard about the Allscripts/Mysis combination; the announcement below was posted by Modern Healthcare. I'm glad to see further consolidation of healthcare technology vendors. In my opinion, there is just too much fragmentation within the industry. Hopefully there will be continued innovations of products for physician practices and more importantly, a betterment in installation and ongoing customer service.

Misys will merge its healthcare division with Allscripts Healthcare Solutions and take a 54.5% ownership stake in the combined company, the healthcare software companies announced.

Misys will pay $330 million in cash to Chicago-based Allscripts, under terms of the deal. Allscripts and Misys' U.S. unit—Misys Healthcare Systems, Raleigh, N.C.—will merge to form a new company that will be run by Allscripts' current management team. A new board of directors will include 10 members—Mike Lawrie, chief executive officer of London-based Misys and executive chairman of the board; and Glen Tullman, Allscripts' CEO, as well as eight more directors to be nominated.

The combined company will have more than 3,700 employees and a client base of 150,000 doctors and 700 hospitals, Allscripts said in a statement. The company will continue to trade on the Nasdaq exchange under Allscripts' symbol. The deal, subject to shareholder and regulatory approval, is expected to close in the next six months.

Misys Healthcare Systems had been struggling to turn around weak performance. In September 2007, QuadraMed Corp., Reston, Va., bought the company's computerized patient-record product for $33 million, and by the end of the year parent Misys said financial trading had improved its healthcare business' growth.

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