Allscripts sells $525 million Netsmart stake
Allscripts has signed a definitive agreement to sell its stake in behavioral health EHR vendor Netsmart to private equity firms TA Associates and GI Partners for a total of $525 million.
The sale ends a two-year relationship between Allscripts and Netsmart that began when Allscripts contributed its homecare business to the behavioral health EHR vendor in exchange for the largest ownership stake in the company, according to xtelligent Healthcare Media.
In addition to behavioral health, Netsmart also offers health IT solutions for human services and post-acute care providers. Allscripts announced it plans to close the sale by the end of the fourth financial quarter of 2018.
“Netsmart provides the scale and the depth and breadth of solutions required to navigate the significant opportunities in the post-acute care market, and we are thrilled with how the business has performed over the last two years,” said Allscripts President Rick Poulton.
“We believe now is the right time to recognize the significant value we have created by monetizing our investment and improving our balance sheet,” Poulton added.
Allscripts stated it will use the $525 million to repay long-term debt, invest in other growing areas of its business, and repurchase its outstanding common stock.
In total, Allscripts hopes to reduce its outstanding debt by about $500 million.
Read the full story at xtelligent Healthcare Media.
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