CHICAGO–(BUSINESS WIRE)–March 3, 2006–
Company Extends Leadership Position Across All Segments in Electronic
Health Record and Physician Practice Markets
Allscripts (Nasdaq:MDRX), the leading provider of clinical
software, connectivity and information solutions that physicians use
to improve healthcare, announced today the completion of its
acquisition of A4 Health Systems (A4), a leading provider of practice
management and electronic health record (EHR) solutions for small and
mid-sized physician groups, for approximately $215 million in cash and
3.5 million shares of Allscripts common stock and an additional
working capital payment.
The acquisition of A4 doubles Allscripts’ clinical software
revenues as well as the size of its sales force. The acquisition also
significantly expands Allscripts existing product portfolio, providing
the Company with an integrated practice management solution for its
award-winning TouchWorks(TM) Electronic Health Record. Additionally,
Allscripts will offer A4’s HealthMatics(R) integrated practice
management and EHR solution to small, independent physician practices,
where the majority of physicians practice and view a combined solution
as a requirement. HealthMatics(R) is currently in use by more than
1,500 practices and approximately 8,000 physicians nationwide.
“This is a historic day for Allscripts and A4, as our two
companies merge to create a clear leader to serve the clinical and
administrative needs of medical groups across all market segments,”
said Glen Tullman, Chief Executive Officer of Allscripts. “In
addition, we broaden our portfolio with software that automates
emergency department and care management functions, both key points of
connection from the hospital to the ambulatory physicians we serve and
to the electronic healthcare record they use. With the experience and
the expertise of more than 800 employees in the combined company, a
blue chip client base across all practice sizes, and a base of nearly
$200 million in annual revenue upon which to build, we have
significantly accelerated our leadership position in this rapidly
growing market segment. Allscripts’ future has never been more
promising.”
John McConnell, Chief Executive Officer of A4 and founder of Medic
Computer Systems, added, “It is exciting to see the market
accelerating in the way that it is right now. This was the perfect
time to bring our two companies together.” McConnell will join the
Allscripts Board of Directors following the closing and continue to be
involved with marketing, sales and industry efforts. Mr. Tullman
added, “John will continue to be a large shareholder in Allscripts and
a key contributor at a strategic and selling level. Anytime you add
that kind of expertise to our already distinguished and experienced
Board, it’s a real win for the Company.”
David Bond, who is currently President and Chief Operating Officer
of A4, will assume leadership responsibility for the A4 business unit
and solutions targeted to small to medium size practices, and will
report directly to Mr. Tullman. Mr. Bond has over 25 years of
experience in the healthcare and computer software industry, including
senior leadership roles at Medic Computer Systems before joining A4 in
1998 as Vice President of Sales and Marketing. Mr. Bond became
Executive Vice President of the A4 Ambulatory Division in 2001 and was
appointed President and Chief Operating Officer in 2004.
“David brings a great deal of energy and experience to the table
in terms of managing all aspects of the current operation as well as
significant knowledge of the markets we are going after,” commented
Mr. Tullman. “We are excited to have David’s leadership and I’m
looking forward to working closely with him to build on the success he
and John created at A4.”
The New Allscripts
Allscripts is the leading provider of clinical software,
connectivity and information solutions that physicians use to improve
healthcare. The Company’s business groups provide unique solutions
that inform, connect and transform healthcare. The Clinical Solutions
Group’s award-winning software applications include electronic health
record, practice management, e-prescribing, document imaging,
emergency department and care management solutions. Additionally,
Allscripts provides clinical product education and connectivity
solutions for physicians and patients through its Physicians
Interactive(TM) Group and medication fulfillment services through its
Medication Services Group. To learn more, visit Allscripts on the Web
at www.allscripts.com.
This announcement may contain forward-looking statements about
Allscripts that involve risks and uncertainties. These statements are
developed by combining currently available information with Allscripts
beliefs and assumptions. Forward-looking statements do not guarantee
future performance. Because Allscripts cannot predict all of the risks
and uncertainties that may affect it, or control the ones it does
predict, Allscripts’ actual results may be materially different from
the results expressed in its forward-looking statements. For a more
complete discussion of the risks, uncertainties and assumptions that
may affect Allscripts, see the Company’s 2004 Annual Report on Form
10-K, available through the Web site maintained by the Securities and
Exchange Commission at www.sec.gov.
CONTACT: Allscripts
Dan Michelson, 312-506-1217
dan.michelson@allscripts.com
SOURCE: Allscripts