Healthcare Business News

Allscripts confirms it is considering strategic alternatives

By Joseph Conn
Posted: November 8, 2012 - 5:15 pm ET

Allscripts CEO Glen Tullman confirmed what the street has been buzzing about since late September, saying in a prepared statement and confirming in a call with market analysts today that the publicly traded company is exploring “strategic alternatives.”

"We are confirming today that in light of the ongoing interest expressed in the company by third parties, the company is evaluating strategic alternatives," Tullman said in a news release.

As a result, the company also announced it was withdrawing its 2012 annual guidance to investors.

"Regardless of the outcome of this process," Tullman said, "Allscripts' primary focus is and will continue to be serving our clients through our industry-leading technology, services and the support we provide to 1,500 hospitals and over 50,000 ambulatory physician practices and post-acute providers with whom we do business."

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The company statement said there is no assurance "that the process will result in any specific transaction" and that it doesn't plan further comment unless the Allscripts board approves a transaction. Citigroup is advising the company during the process, it said.

On Sept. 28, citing unnamed sources, Bloomberg news service reported that Allscripts was considering a sale via a leveraged buyout, but at the time a company spokeswoman refused to comment on "rumors or speculation."

Asked during the analysts' call Thursday about the turmoil caused by the sale rumors, Tullman said, "We expect there will be good results once we get the noise out of the market."

Allscripts reported third-quarter revenue for the period ended Sept. 30 of $360.7 million and net income of $9.4 million, or $0.05 per share of common stock.

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