Allscripts Sold The Sponsorship Coordination Business To Wellsky For $1.3 Billion
Allscripts said that the deal with WellSky is a “win-win” for the company because it helps strengthen its focus on its core business. The healthcare IT company announced on Tuesday that Allscripts announced the sale of its healthcare coordination business to WellSky for $1.3 billion.
Boston-based CarePort Health was acquired by Allscripts in 2016 and is currently developing a plan that connects acute, and motivational treatment providers.
Medical technology company WellSky said that the acquisition of CarePort will allow the company to facilitate the effective transition of patient care. Along the chain, resulting in better outcomes for patients, providers and payers.
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By adding CarePort, WellSky has unique advantages in managing the acute care discharge process. Tracking patients in the post-acute care environment, analyzing patients and population levels, and supporting care programs. The company said it is based on electronic medical records.
Bill Miller; CEO WellSky
WellSky is headquartered in Overland Park, Kansas, and is jointly owned by TPG Capital and Leonard Green & Partners. The two largest private equity firms in the world.
CarePort’s solution suite is independent of electronic health records, linking the discharge process with post-discharge care coordination. So that providers and payers can track and manage patients throughout their journey of interest. WellSky said that the CarePort solution can help hundreds of hospitals and thousands of post-acute care providers to effectively coordinate and transport patients in different care environments.
Bill Miller, CEO of WellSky, said in a statement. The partnership between WellSky and CarePort will create new and meaningful connections between different care environments in the past. We have an exciting opportunity for more providers. Provide coordinated care to provide smarter, personalized care.
He said: “Through this agreement, we will ensure that our customers have the smart technology they need to do the right things with their patients. Plus work with payers, and succeed in a value-based care model.”
Company officials said that with WellSky’s expertise in post-acute care and CarePort’s care coordination solution suite. The acquisition is “naturally appropriate. CarePort customers will have access to a wider network of post-acute care providers. Moreover, it can benefit from WellSky’s predictive analytics suite and value-based care technology suite.
“This transaction is another overall victory for Allscripts because it brings considerable value to our shareholders. Allowing us to focus more on our core business and provide CarePort customers with continuous investment under very new ownership. Advantage.” Rick said. Bolton, President and Chief Financial Officer of Allscripts, in a statement.
Allscripts said in a press release that the agreed sales price of $1.35 billion is more than 13 times the revenue of CarePort in the past 12 months.
According to Nasdaq.com, after the company announced the deal, Allscripts shares rose 55% during the extended trading session on Tuesday.
Also, CarePort has included in Allscripts data, analysis and departmental care coordination reports, accounting for approximately 6% of Allscripts’ comprehensive income.
Furthermore, Allscripts said it expects that the net proceeds from the after-tax sale will be used to invest in its solutions. Thereby further reducing the company’s balance sheet and supporting meaningful share buybacks.
However, this is the second sale of Allscripts in the second half of 2020. The company announced on the July 31 second-quarter earnings conference call that it will sell its EPSi business to Strata Decision Technology for $365 million.
EPSi is a provider of financial decision support and planning tools for hospitals and medical systems. The transaction is expected to expire later in the third quarter.
According to regulatory approval, CarePort Health sales are expected to be completed before the end of this year.
Hence, William Blair and J. Morgan Securities (LLC) acted as financial advisors to Allscripts regarding the sale of CarePort.