Health IT company Healthland Holding Inc. has reached a deal to be sold to an Alabama company for $250 million.
The buyer, Mobile, Ala.-based Computer Programs and Systems Inc. (CPSI), said in a news release Wednesday that the combined business will generate $300 million in revenue and employ more than 1,000 workers.
Healthland launched in 1980 as Dairyland Healthcare Solutions. It was initially headquartered in Glenwood, Minn., and carved out a niche in selling electronic health record systems to rural hospitals. Private equity firm San Francisco-based Francisco Partners bought the company, now headquartered in St. Louis Park, in 2007.
Healthland CEO Chris Bauleke will join CPSI, which also targets small hospitals, as president of Healthland.
The acquisition covers Healthland’s affiliated businesses, including American HealthTech Inc., which serves skilled nursing facilities; and Rycan Technologies Inc., a maker of revenue cycle management software for hospitals.
CPSI (NASDAQ:CPSI) expects the deal to close this year.
Date: November 25, 2015