Strata Decision Technology will acquire Allscripts subsidiary EPSi for $ 365 million. The deal, which is expected to close later this year, would merge together two business decision support systems, which provide health systems analytics on the cost of care.
“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,” Strata CEO Dan Michelson said in a news release. “Our focus will be to accelerate innovation to provide broader and deeper solutions to help our customers, deliver the highest service levels in the industry, and create the very best place to work in healthcare.”
After the deal closes, EPSi’s employees and customer base will transition to Strata. In the meantime, the two companies will continue to operate independently. In a Thursday earnings call, Allscripts President Rick Poulton said the proceeds “will be used to de-lever and further strengthen our liquidity positions.”
Allscripts acquired EPSi in 2010 when it bought Eclipsys Inc. The company has struggled financially in recent years: After reporting a $ 182 million net loss last year, Allscripts brought on turnaround firm AlixPartners to create a margin improvement plan.
In the most recent quarter, the company reported an $ 8 million net loss — an improvement from the second quarter of 2019. But bookings decreased to $ 188 million from $ 276 million in 2019. The company also reported $ 27.6 million in restructuring costs, most of which was from severance.
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