Allscripts may remove itself from the deal that sent its home care and hospice software division to Netsmart two years ago. The Chicago-based hospital and physician EMR company revealed in an August 2 earnings update call with investors that its 42% stake in the company that now owns its former Allscripts Homecare product line is for sale and buyers are being considered. Allscripts had acquired the post-acute software systems from London-based Misys in 2008. (Misys Merges with Allscripts, HCTR, 3/22/08)
As we reported in our 3/30/16 issue (see "Allscripts Reinvests in Home Care"), Allscripts acquired its minority position by investing $70 million plus the value of its home care and hospice software products. San Francisco's GI Partners, an equity investment firm, contributed $338,828,140.00, which was deemed to be equivalent to the Allscripts investment. A small percentage was set aside for Netsmart so that neither of the major investors would own a controlling share.
During the investor call, AllscriptsCEO Paul Black outlined company revenue for the first six months of 2018 and affirmed the financial outlook for the remainder of the year that was first published on February 15.
- Allscripts, excluding Netsmart, Adjusted EBITDA between $310-340 million, and;
- Netsmart Adjusted EBITDA between $110-120 million
No announcement will be made beyond the investor call until a buyer has been selected and the sale approved.
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