Allscripts Healthcare Solutions last week finalized the sale of its care coordination subsidiary to WellSky Corp. for $1.35 billion, Allscripts said Monday.
The $1.35 billion figure represents more than 13 times CarePort Health's revenue over the last 12 months and roughly 21 times the company's adjusted earnings before interest, taxes, depreciation and amortization, the companies said when they announced the deal in October. CarePort, which sells tools connecting acute- and post-acute care providers and payers, represented roughly 6% of Allscripts' revenue.
Under the agreement, CarePort's customers and employees will transition to WellSky, a company that develops software tools for post-acute care providers. WellSky is owned by private equity firms TPG Capital and Leonard Green & Partners.
The care coordination business will now be called "CarePort, powered by WellSky."
WellSky officials in October said buying CarePort would better position the company to manage the acute-care discharge process, as well as tracking for patients across post-acute care settings.
"Together with CarePort, WellSky will establish new, meaningful connections between historically disparate settings of care," WellSky CEO Bill Miller said in an October statement.
On the heels of the announcement in October, Allscripts sued CarePortMD, a telemedicine and urgent-care company, accusing the startup of trademark infringement, false designation of origin and unfair competition. Allscripts argued that the startup's CarePortMD branding was too similar to a trademark that it held for "CarePort." The court has not yet ruled in the case.
CarePort was the second major sale Allscripts announced in 2020 after selling EPSi, a business unit focused on financial decision support, to Strata Decision Technology for $365 million.
Allscripts posted $402.1 million in revenue for 2020's third quarter, the most recent period for which the company has posted financial results, down 9.5% year-over-year.
Allscripts posted $9.4 million in operating income for the quarter, up from $3.2 million during the same period in 2019.
Together, the two divestitures—EPSi and CarePort—will allow Allscripts to "focus on simplifying and improving performance of the core business," such as its electronic health record systems, said Rick Poulton, Allscripts' president and chief financial officer, on a call with investment analysts Oct. 29.