Vista will pay Greenway stockholders $20.35 in cash per share for their common stock, representing a 62% premium to Greenway's 90-day average share price and a 20% premium to the stock's closing price the day before the transaction announcement. The purchase price is estimated to be about 4.7 times Greenway's 2013 sales, according to William Blair & Co.
Greenway and Vitera each control 2.5% and 2.1%, respectively, of the complete EHR market for physicians and eligible professionals. Together, they'll be the sixth largest company in this sphere, whereas Greenway is currently seven and Vitera is 11 in market share for the EHR space.
As the two work to achieve interoperability, their products and services are expected to be marketed under the Greenway brand, while maintaining Greenway's headquarters and operations in Carrollton, Ga.; Tampa, Fla.; and Birmingham, Ala. Vitera is based in Tampa, Fla.
“We are pleased to approve this agreement and look forward to completing this transaction,” Thomas Green, founder of Greenway Medical and its chairman, said in a news release. “It provides substantial cash value for our stockholders, and reflects our deep commitment to drive innovation that helps healthcare professionals succeed and thrive in today's evolving healthcare landscape.”
In 2011, Vista acquired Sage Healthcare Division from The Sage Group, rebranding its $320 million cash purchase as Vitera Healthcare Solutions. Greenway was founded in 1998 and went public in February 2012. The all-cash tender offer for Greenway, which is contingent upon clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, is expected to close in the fourth quarter of 2013.
The price of Greenway shares on the Nasdaq was up nearly 19% Tuesday afternoon.
Follow Rachel Landen on Twitter: @MHrlanden
