Clinical software provider Allscripts Healthcare Solutions, Chicago, announced that it had bought Extended Care Information Network for about $90 million in cash, and helped finance the deal by borrowing about $50 million, according to a news release.
Headquartered in Chicago, ECIN provides Web-based hospital-care management and discharge-planning software, has more than 80 employees, and generated an estimated $19 million in 2007. ECIN reports that it has a client base of more than 400 hospitals and almost 5,000 nursing homes, assisted-living centers and other post-acute-care settings.
Allscripts will market ECIN products within a new business unit, Hospital Solutions Group, to be headed by ECIN Chief Executive Officer Jeff Surges, the former president and general manager of McKessons Resource Management Group.
Other products sold within this unit will include Allscripts existing Web-based care-management product, Canopy, and its emergency department information systems solution. Allscripts will continue to support both its and ECINs care-management products for the foreseeable future, the release said.
Allscripts President Lee Shapiro described the two care-management solutions as complementary rather than competing, and he hinted that there might be some consolidation at a later date. There is some overlap, Shapiro said. In the future, well be converging these products and offering the best of what they have to offer to our clients.
The transaction is not expected to result in layoffs, Shapiro said. -- by Andis Robeznieks
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