CHICAGO–(BUSINESS WIRE)–Feb. 23, 2006–Allscripts (Nasdaq:MDRX)
announced today that it has agreed to sell 7,300,000 shares of common
stock at a public offering price of $17.75 per share. After deducting
underwriting discounts and commissions, net proceeds to Allscripts
will be $123.1 million (or a net price of $16.86 per share). On
February 22, 2006, the last sale price of Allscripts common stock on
the Nasdaq National Market was $18.15 per share.
Allscripts intends to use all of the net proceeds from the
offering to finance the proposed acquisition of A4 Health Systems,
Inc. If the acquisition is not consummated, the proceeds will be used
for general corporate purposes.
The offering was led by Lehman Brothers and UBS Investment Bank as
joint book-running managers. Jefferies Broadview, William Blair &
Company, Piper Jaffray and Goldman, Sachs & Co. were co-managers for
the offering. Allscripts has granted the underwriters an option to
purchase up to an additional 1,095,000 shares from Allscripts if the
underwriters sell more than 7,300,000 shares of common stock in the
offering.
As previously announced, Allscripts is repurchasing 1,250,000
shares of its common stock from IDX Systems Corporation, a subsidiary
of GE, contingent upon the closing of the offering. The purchase price
for the shares is $16.86 a share (the net price per share that
Allscripts will receive in the offering), for an aggregate price of
$21.1 million.
A copy of the final prospectus supplement and accompanying
prospectus relating to the offering may be obtained, when available,
from Lehman Brothers, Prospectus Department, c/o ADP Financial
Services, Integrated Distribution Services, 1155 Long Island Avenue,
Edgewood, New York, NY 11717 and UBS Investment Bank, 299 Park Avenue,
New York, NY 10071. These documents are being filed with the
Securities and Exchange Commission and will be available over the
Internet at the SEC’s web site at http://www.sec.gov.
About Allscripts
Allscripts is a provider of clinical software, connectivity and
information solutions that physicians use to improve healthcare.
Allscripts Clinical Solutions Group’s clinical software applications
include Electronic Health Record, e-prescribing and document imaging
solutions. Additionally, Allscripts provides clinical product
education and connectivity solutions for physicians and patients
through its Physicians Interactive(TM) Group and medical fulfillment
services through its Medication Solutions Group.
This announcement shall not constitute an offer to sell, or the
solicitation of an offer to buy, nor shall there be any offer of these
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to the registration or qualification
under the securities laws of any such jurisdiction.
Statements in this press release contain forward-looking
information within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, including
statements about the offering, the proposed acquisition, the proposed
stock repurchase and the intended use of proceeds of the offering.
These statements involve a number of risks and uncertainties,
including conditions in the financial markets and customary closing
conditions. For a more complete discussion of the risks, uncertainties
and assumptions that may affect Allscripts, see the final prospectus
supplement relating to the offering and Allscripts’ 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
Bill Davis, 312-506-1211
bill.davis@allscripts.com
SOURCE: Allscripts