March 03, 2022 — Allscripts Healthcare Solutions (NASDAQ: MDRX) sold net assets of AllScript Hospitals and Large Physical Practice business to N. Harris Computer Corporation (N. Harris Computer Corporation)
The assets for sale include Sunrise™, Paragon®, Allscripts TouchWorks®, AllScripts® Opal, STAR™, HealthQuest™, and db Motion™. Allscripts Veradigm division assets will be excluded from the sale and will continue to be operated by AllScript.
Paul M. Black, CEO of AllScript, said, “There have been tremendous changes in the medical industry in which AllScript is engaged, and customers of other divisions are evolving in various ways.” Thanks to the sale, I think it will maximize concentration and future opportunities for customers, more than 7,500 employees and shareholders. Harris is a company that is aware of software development, customer satisfaction, and global medical growth. I am very happy to think that AllScript’s solution will serve as a strategic axis for Harris’ plan to become a leader in the digital medical community. AllScript, the cornerstone of the Harris portfolio, will continue to proudly offer customers the benefits of a true medical platform, he said.
The sale price is $700 million in cash, including $670 million paid at the completion of the contract and up to $30 million paid according to the two-year business performance after the contract is completed. The sale deal is expected to close in the second quarter after customary closing conditions with regulators.
Harris CEO Jeff Bender said, “Harris has long watched franchises in hospitals and large-scale businesses. For competent employees and long-term customers, who are the basis of franchises in hospitals and large-scale businesses, Harris thinks he is a perfect base. I’m happy to write the next chapter of Harris Story. We will continue to cooperate with medical companies to provide life-saving medical services to the community where we live, he said.
William Blair & Company, as an advisor, presented an opinion on the fairness guarantee of the deal to the AllScript board of directors. AllScript will submit additional information related to the sale to the U.S. Securities and Exchange Commission (SEC) in an 8-K form report.