Allscripts to sell CarePort Health business to WellSky
Allscripts (NASDAQ:MDRX) has announced the sale of its CarePort Health business to WellSky Corp. for $1.35 billion. This deal values CarePort at over 13 times its revenue and 21 times its non-GAAP Adjusted EBITDA. CarePort constitutes approximately 6% of Allscripts' consolidated revenues. The transaction is set to close by year-end, pending regulatory approvals. Proceeds from the sale will be utilized to enhance Allscripts' solutions, reduce debt, and support share repurchases. Management believes this move unlocks significant value for shareholders and allows a sharper focus on core operations.
- Sale of CarePort for $1.35 billion, potentially enhancing shareholder value.
- Transaction values CarePort at over 13 times revenue and 21 times non-GAAP Adjusted EBITDA, indicating strong market positioning.
- Proceeds will be used for debt reduction and share repurchases, aligning with shareholder interests.
- None.
CHICAGO--(BUSINESS WIRE)--Allscripts (NASDAQ:MDRX) announced today the execution of a definitive agreement to sell its CarePort Health (“CarePort”) business to WellSky Corp., a global health and community care technology company. WellSky is jointly owned by two of the world’s largest private equity firms, TPG Capital and Leonard Green & Partners.
CarePort solutions assist hundreds of hospitals and thousands of post-acute care providers to efficiently coordinate and transition patients through different settings of care.
The agreed sale price of
The transaction is expected to close before the end of the year, subject to receipt of regulatory clearances and satisfaction of other customary closing conditions. Upon transaction close, the CarePort client base and associates will transition to WellSky. The two companies will operate independently until that date. Allscripts expects the net after-tax proceeds to be used to invest in its solutions, further deleverage the company’s balance sheet and support significant share repurchases.
“WellSky is a great company that will provide both an ideal and permanent home for CarePort and its almost 200 team members,” said Rick Poulton, Allscripts President and Chief Financial Officer. “This agreement is another all-around win for Allscripts as it unlocks significant value for our shareholders, enables us to increase our focus on our core business and brings our CarePort customers the benefit of continued investment under new and very strong ownership.”
“Together with CarePort, WellSky will establish new, meaningful connections between historically disparate settings of care. We have the exciting opportunity to bring care coordination to more providers in service of delivering more informed, personalized care,” said Bill Miller, CEO of WellSky. “Through this agreement, we’re ensuring our clients have the intelligent technology they need to do right by their patients, collaborate with payers, and succeed in value-based care models. It’s WellSky’s mission to realize care’s potential, and this moves us that much closer to achieving it.”
William Blair and J.P. Morgan Securities, LLC acted as financial advisors to Allscripts in connection with the sale of CarePort. Additional details regarding the sale will be made available in a Form 8-K to be filed by Allscripts with the Securities and Exchange Commission.
About Allscripts
Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our innovative solutions connect people, places and data across an Open, Connected Community of Health™. Connectivity empowers caregivers and consumers to make better decisions, delivering better care for healthier populations. To learn more, visit www.allscripts.com, Twitter, YouTube and The Allscripts Blog.
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Allscripts, the Allscripts logo, and other Allscripts marks are trademarks of Allscripts Healthcare, LLC and/or its affiliates. All other products are trademarks of their respective holders, all rights reserved. Reference to these products is not intended to imply affiliation with or sponsorship of Allscripts Healthcare, LLC and/or its affiliates.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements relating to the timing or ultimate completion of the sale of our Careport business, as the transaction is subject to certain closing conditions as noted herein, our use of the proceeds from the contemplated sale of our Careport business, and potential benefits to our shareholders. These forward-looking statements are based on the current beliefs and expectations of Allscripts management, only speak as of the date that they are made and are subject to significant risks and uncertainties. Such statements can be identified by the use of words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Allscripts does not undertake to update forward-looking statements to reflect changed assumptions, the impact of circumstances or events that may arise after the date of the forward-looking statements, or other changes in its business, financial condition or operating results over time.
