June 9, 2010 – Allscripts and Eclipsys, leading providers of electronic health records (EHR) in the ambulatory and acute health care markets, announced today they will merge to create the one company. The deal includes an all-stock transaction valued at $1.3 billion.
The combination of the companies will create a major health care information technology company offering solutions for all sizes and settings. Allscripts is a leading provider of clinical software, information and connectivity solutions for physicians, and Eclipsys is a leading enterprise provider of solutions and services for hospitals and clinicians.
The combined company will offer a single platform of clinical, financial, connectivity and information solutions. The company's client base will include over 180,000 U.S. physicians, 1,500 hospitals, and nearly 10,000 nursing homes, hospices, home care and other post-acute organizations. The combined company will be positioned to connect physicians, other care providers in the hospital, in small or large physician practices, in extended care facilities, or in a patient's home.
The merger positions the combined company to help its clients more effectively access the approximately $30 billion in federal funding for hospital and physician adoption of EHRs provided by the American Recovery and Reinvestment Act (ARRA). Driven in large part by the ARRA incentives, which begin in 2011, EHR adoption by physician practices is projected to grow from 12 percent to 90 percent by 2019, according to the Congressional Budget Office's (CBO) March 2009 report, "Options for Controlling the Cost and Increasing the Efficiency of Health Care." The CBO report also projects hospital adoption of acute-care EHRs will increase from 11 percent to 70 percent during the same time period.
The Eclipsys Sunrise Enterprise and Performance Management solution for hospitals and the Allscripts portfolio of solutions for physician practices currently leverage common platforms, including Microsoft.NET. This will accelerate the delivery of an integrated hospital and physician practice offering. The companies also share an open architecture approach, simplifying the connection to third-party applications across every care setting, resulting in a single patient record.
The merger agreement has been approved by the Board of Directors of both Allscripts and Eclipsys. The Board of Directors of the combined company will initially consist of a combination of the current directors of Allscripts and Eclipsys. The merger will be subject to stockholder approvals from both Allscripts and Eclipsys, and other customary closing conditions and regulatory approvals, including expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.