Allscripts and Eclipsys have agreed to merge in an all-stock transaction that is worth about $1.3 billion. The merger will create a single healthcare information company with the largest network of clients. Eclipsys stockholders are expected to receive 1.2 shares of Allscripts for every share of Eclipsys stock based on Tuesday’s closing price.
Allscripts is a provider of software and information for physicians. Eclipsys is an enterprise provider that serves hospitals and clinicians. Together they will create one platform of clinical, financial, connectivity and information solutions to include over 180,000 physicians, 1,500 hospitals, and 10,000 nursing homes and other healthcare facilities. The new company will connect all of these clients into a single communications channel.
“We are at the beginning of what we believe will be the single fastest transformation of any industry in US history, and the combination of the Allscripts Electronic Health Record portfolio in the physician office and leadership in the post-acute care market, with Eclipsys’s market-leading hospital enterprise solution creates the one company uniquely positioned to execute on this significant opportunity,” said Glen Tullman, Chief Executive Officer of Allscripts in a statement.
Additionally, the merger will help clients access federal funding for hospital and physician adoption of Electronic Health Records mandated by the recently passed American Recovery and Reinvestment Act (ARRA).
“Many health systems are following North Shore-LIJ’s example, providing electronic health records to their affiliated physicians. The combination of Allscripts and Eclipsys creates a ‘hub’ of large and well respected hospitals that will accelerate connection to 50,000 practices using Allscripts solutions, the largest base of physician users of any healthcare IT company,” said Tullman. “By leveraging our collective footprint, industry-leading products and strong focus on interoperability, the combined company will facilitate better communication between hospitals and physicians and create a new model and a new way of thinking about health based on information and connectivity.”
Source: Eclipsys
