Harris to acquire hospital assets of Allscripts
March 9, 2022
CHICAGO – Allscripts Healthcare Solutions announced that it has reached an agreement with Toronto-based Constellation Software Inc., through its wholly-owned subsidiary N. Harris Computer Corp., to sell Harris the net assets of Allscripts Hospitals and Large Physician Practices business segment.
The Hospitals and Large Physician Practices business segment includes the Sunrise, Paragon, Allscripts TouchWorks, Allscripts Opal, STAR, HealthQuest and dbMotion solutions. The assets of Allscripts Veradigm business segment are not included in this transaction and will continue to be owned by Allscripts going forward.
The purchase price consideration is up to US$700 million cash, consisting of a fixed price of US$670 million paid at closing, plus contingent consideration of up to US$30 million based on performance of the business during the two years following transaction closing.
“The medical industry we faithfully serve has gone through tremendous change and the needs of the customers in our different business segments continue to evolve in different ways. We think this transaction maximizes focus as well as future opportunity for our clients, our more than 7,500 associates and our shareholders,” said Paul M. Black, Allscripts chief executive officer.
“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 become leaders in digital health. As the cornerstone of the Harris portfolio, we are proud that our customers will continue to benefit from a true platform of health.”
The transaction is subject to regulatory approval and customary closing conditions, and is expected to close during the second quarter.
“We have been watching and admiring the hospitals and large physician practices franchise for many years,” said Harris CEO Jeff Bender (pictured). “We believe that we are the perfect forever home for the many talented employees and loyal customers that are the backbone of the franchise. We are excited to begin the next chapter in our Harris story, continuing to serve those who serve us in the communities where we live, by partnering with healthcare professionals to deliver care that improves lives.”