Allscripts Healthcare Solutions completed the sale of its hospital and large physician practices business, including various electronic health record products.
Here are five things to know about the deal:
1. Chicago-based Allscripts announced in March it would sell the net assets of its hospital and large physician practices business to Canadian software company Constellation Software through its subsidiary N. Harris Computer for $670 million. The price could rise by up to $30 million depending how well the business performs in the next two years.
2. The hospital and large physician practices segment includes Allscripts' Sunrise, Paragon, TouchWorks and Opal EHRs, STAR and HealthQuest revenue-cycle management systems, and dbMotion population health management services.
3. Allscripts has said it will use proceeds from the sale on share repurchases and acquisitions to support its payer and life sciences business, Veradigm, which it launched in 2018.
"This transaction enables Allscripts to strengthen its focus on high growth end markets of interest as well as provide additional value for our clients, employees and shareholders," said Rick Poulton, the company's president and chief financial officer, in a news release.
4. Allscripts posted $1.5 billion in revenue last year, up 2%, with $927.6 million in revenue from its hospitals and large physician practice business, down 2.4%. Veradigm accounted for $552.2 million in revenue, up 4.6%.
In a presentation shared with investors in March, Allscripts said the hospital and large physician practices segment was expected to shrink for the third consecutive year.
5. Allscripts holds 4.3% of EHR market share among U.S. acute-care hospitals, according to a recent report from KLAS Research. That's after Epic Systems, 32.9%; Cerner, 24.4%; Meditech, 16.7%; and CPSI, 8.7%. Oracle late last year announced plans to acquire Cerner for $28.3 billion, in a transaction that's yet to close.