Strata Decision Technology, which develops cloud-based business intelligence tools, will pay $365 million for the subsidiary.
Strata Decision Technology, which develops financial planning software, analytics and performance benchmarking tools for healthcare, has agreed to acquire Allscripts’ financial decision support subsidiary EPSi for $365 million.
The deal is expected to close later this year, subject to regulatory approval and customary closing conditions, the companies said. Once it does, EPSi’s customer base and associates will transition to Strata.
EPSi has been part of Allscripts since its $1.3 billion merger with Eclipsys in 2010.
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Strata says the acquisition of EPSi will help its healthcare clients as they navigate the already significant financial pressures that have only been exacerbated by the COVID-19 crisis.
“By bringing these two outstanding companies together, we believe that we can build one of the most important companies in helping to solve the biggest problem in healthcare – the cost of it,” said Strata CEO Dan Michelson in a statement. “Our focus will be to accelerate innovation to provide broader and deeper solutions to help our customers.”
It will also give a cash infusion to Allscripts, whose stock was downgraded by some analysts earlier this month, but more recently beat estimates.
“Strata is a world-class company that will provide both an ideal and permanent home for EPSi,” said Allscripts President and Chief Financial Officer Rick Poulton in a statement. “This agreement is a triple win for EPSi customers and Allscripts shareholders as it allows us to efficiently recirculate capital, increase our focus on our core businesses, and bring our EPSi customers the benefit of continued investment under new and very strong ownership.”
Source: Healthcare IT News