Constellation Software, through its subsidiary, N. Harris Computer, has concluded an agreement for the acquisition of the net assets of Allscripts Healthcare Solutions’ Hospitals and Large Physician Practices business unit for $700m in cash.
The Sunrise, Paragon, Allscripts TouchWorks, Allscripts Opal and dbMotion solutions are all part of the business division.
Allscripts Veradigm business segment’s assets are not part of this deal with Allscripts continuing to own it.
Harris Group Healthcare president Jerry Canada said: “Allscripts has a long and rich history of providing solutions to healthcare organisations.
“We believe that the employees and customers of both organisations will benefit from the possibilities created by this forever relationship.”
As per the deal, the acquisition value comprises a fixed amount of $670m to be paid at the closing of the deal.
It also includes contingent payment of up to $30m dependent on the business performance in the two years on the closing of the deal.
The deal is anticipated to conclude in the second quarter of this year subject to regulatory approval and necessary closing conditions.
Constellation aims to fund the acquisition of the Allscripts Hospitals and Large Physician Practices business segment on its own.
Allscripts CEO Paul Black said: “Harris has demonstrated excellence in software development, customer satisfaction and worldwide growth in healthcare.
“We are pleased that our solutions will be a key strategic component of Harris’ plans to becoming leaders in digital health.
“As the cornerstone in the Harris portfolio, we are proud that our customers will continue to benefit from a true platform of health.”
Allscripts’ Hospitals and Large Physician Practices generated gross revenue of $928m for the period ended on 31 December last year.