Misys Healthcare LLC (Raleigh, N.C.) and Chicago-based Allscripts are merging in a deal that will see Misys give $330 million to Allscripts and receive over 50 percent of the new combined entity.
The current Allscripts management team will continue in its roles at the combined company. Glen Tullman, CEO of Allscripts, will serve as CEO, and Bill Davis, CFO of Allscripts, will serve as CFO. Mike Lawrie, CEO of Misys, will serve as executive chairman of the board of directors. The new board will have 10 members, including Lawrie, Tullman, five directors nominated by Misys and three directors nominated by Allscripts. The combined company, which would have over 3,700 employees, will be headquartered in Chicago. Allscripts will continue to trade on the NASDAQ under the MDRX ticker.
The combined company will have a client base of approximately 150,000 U.S. physicians and 700 hospitals. In its 2007 fiscal year (June 1, 2006 to May 31, 2007), Misys Healthcare (a subsidiary of London-based Misys Plc) had revenues of $376 million, and profit before exceptional items of $39.5 million. The combined company expects to achieve annual pre-tax cost synergies of $15 to $20 million in the first full year following the close of the transaction, increasing to total annual cost synergies of $25 to $30 million in the years that follow.
