Allscripts (NASDAQ:MDRX), a global leader in healthcare technology,
today announced a definitive agreement to acquire McKesson
Corporation’s (NYSE:MCK) hospital and health system IT business,
Enterprise Information Solutions, for $185 million in cash, subject
to adjustment for net debt and working capital.
This strategic acquisition further advances Allscripts strategy
to offer the most comprehensive, high performing health information
technology and solutions. Upon close, McKesson will have furthered
its focus as a global leader in healthcare supply chain management
solutions.
The Enterprise Information Solutions portfolio includes a robust
set of clinical and financial solutions supporting the full scope
of care delivery processes — including Paragon (EHR solution); STAR
and HealthQuest (Revenue Cycle solutions); Lab Analytics and Blood
Bank; and OneContent (Content Management solutions).
“Adding these assets to Allscripts existing portfolio enables us
to better serve our clients, increase our scale and further drive
our investment in innovation,” said Allscripts Chief Executive
Officer Paul M. Black. “This transaction is expected to directly
benefit our existing clients and our shareholders, as well as the
Enterprise Information Solutions clients and team members we’ll
welcome to our family. Allscripts is a critical strategic partner
to thousands of healthcare organizations and our highest priority
is to successfully meet their highly complex needs of today and in
the future, as we enable them to lead the change to smarter
care.”
Black continued, “The healthcare IT market remains highly
fragmented. Today’s announcement is a proactive and strategic
measure to maintain Allscripts long-term leadership and position
Allscripts for continued growth.”
“We have selected a company that can serve the long-term
interests of our customers and has the experience and capabilities
to deliver value through its population health, precision medicine,
consumer and care management solutions,” said John H. Hammergren,
chairman and chief executive officer, McKesson. “The conclusion of
this process demonstrates our commitment to support the success of
our hospital customers and provide growth opportunities for
Enterprise Information Solutions employees.”
Allscripts will invest in and continue to offer Paragon as the
integrated EHR and revenue cycle management solution for the small
hospital market segment, while Allscripts Sunrise™ will continue as
the primary platform for larger institutions, typically with highly
complex service line needs. After the proposed transaction closes,
the combination of Paragon and Sunrise hospitals will double
Allscripts current EHR hospital client count in the United
States.
Taken together, Allscripts comprehensive hospital, health system
and physician EHR portfolio — plus solutions for value-based care,
revenue cycle management, IT services, precision medicine and
post-acute care — will help hospitals, health systems and
physicians deliver on the promise of advanced and personalized
care, with improved operational and financial performance.
Transaction Summary
This transaction is targeted to close early in the fourth
quarter of calendar 2017, subject to the satisfaction of customary
closing conditions, including the expiration or termination of the
waiting period under U.S. antitrust laws.
Allscripts intends to fund the purchase price through its
existing secured credit facilities and cash balances.
Additional details of the acquisition are available in a Form
8-K to be filed by Allscripts with the Securities and Exchange
Commission.
Please see Allscripts second quarter 2017 earnings release
published today, August 3, 2017, for additional comments on the
impact of the acquisition on Allscripts financial outlook.
About Allscripts
Allscripts (NASDAQ:MDRX) is a leader in healthcare information
technology solutions that advance clinical, financial and
operational results. Our innovative solutions connect people,
places and data across an Open, Connected Community of Health™.
Connectivity empowers caregivers to make better decisions and
deliver better care for healthier populations. To learn more, visit
www.allscripts.com, Twitter,
YouTube and It Takes A Community: The Allscripts
Blog.
About McKesson Corporation McKesson
Corporation, currently ranked 5th on the FORTUNE 500, is a global
leader in healthcare supply chain management solutions, retail
pharmacy, community oncology and specialty care, and healthcare
information technology. McKesson partners with pharmaceutical
manufacturers, providers, pharmacies, governments and other
organizations in healthcare to help provide the right medicines,
medical products and healthcare services to the right patients at
the right time, safely and cost-effectively. United by our ICARE
shared principles, our employees work every day to innovate and
deliver opportunities that make our customers and partners more
successful — all for the better health of patients. McKesson has
been named the “Most Admired Company” in the healthcare wholesaler
category by FORTUNE, a “Best Place to Work” by the Human Rights
Campaign Foundation, and a top military-friendly company by
Military Friendly. For more information, visit
www.mckesson.com.
Forward Looking StatementsThis press release
includes “forward-looking statements” within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as amended, that are subject to risks and
uncertainties and other factors. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements, including statements regarding the
ability to complete the transaction considering the various closing
conditions; the expected benefits and costs of the transaction; any
projections of earnings, revenues or other financial items; any
statements of the plans, strategies and objectives of management
for future operations; any statements regarding product or service
development, extensions or integration; any statements of
expectation or belief; any statements regarding general industry
conditions and competition; any statements regarding economic
conditions; and any statements of assumptions underlying any of the
foregoing. Risks, uncertainties and assumptions include risks
related to the timing or ultimate completion of the transaction, as
the transaction is subject to certain closing conditions, including
receipt of all necessary regulatory clearances; the possibility
that expected benefits may not materialize as expected; Allscripts’
ability to successfully implement integration strategies; as well
as the ability to ensure continued performance or market growth of
the products and services of EIS. These risks, uncertainties and
other factors, and the general risks associated with EIS described
in the reports and other documents filed with the Securities and
Exchange Commission, could cause actual results to differ
materially from those referred to in the forward-looking
statements. All forward-looking statements are based on information
currently available to Allscripts and McKesson and are qualified in
their entirety by this cautionary statement. Except as required by
law, neither Allscripts nor McKesson assume any obligation to
update any such forward-looking statements or other statements
included in this press release.
Shareholders are encouraged to review SEC filings and more
information about Allscripts and McKesson, which are located on
each of the companies’ websites.
For more information contact:
Allscripts:
Investors:
Seth Frank
312-506-1213
seth.frank@allscripts.com
Media:
Tom Lynch
312-386-6765
tom.lynch@allscripts.com
McKesson:
Investors and Financial Media:
Craig Mercer
415-983-8391
Craig.Mercer@McKesson.com
General and Business Media:
Kristin Hunter Chasen
415-983-8974
Kristin.Chasen@McKesson.com
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