Allscripts, a healthcare information technology company, announced a definitive agreement to sell its CarePort Health (CarePort) business to WellSky (an online healthcare practice management platform jointly owned by private equity firms TPG Capital and Leonard Green & Partners) for $1.35 billion.
According to Allscripts, the CarePort’s $1.35 billion price tag represents more than 13 times its revenue over the past 12 months. It is also roughly 21 times CarePort’s non-GAAP adjusted EBITDA over the trailing 12 months. CarePort’s practice management solutions help hospitals and post-acute care providers efficiently coordinate and transition patients through different care settings. CarePort is included in Allscripts Data, Analytics, and Care Coordination reporting segment and represents approximately 6% of Allscripts consolidated revenues.
As part of the acquisition, CarePort’s customers and more than 200 employees will join WellSky.
“Together with CarePort, WellSky will establish new, meaningful connections between historically disparate settings of care. We have the exciting opportunity to bring care coordination to more providers in service of delivering more informed, personalized care,” said Bill Miller, CEO of WellSky.
Bill Miller added: “Through this agreement, we’re ensuring our clients have the intelligent technology they need to do right by their patients, collaborate with payers, and succeed in value-based care models. It’s WellSky’s mission to realize care’s potential, and this moves us that much closer to achieving it.”
William Blair and J.P. Morgan Securities acted as financial advisors to Allscripts in connection with the sale of CarePort. Additional details regarding the sale will be made available in a Form 8-K to be filed by Allscripts with the Securities and Exchange Commission.
This is the fourth digital health acquisition by WellSky. Last year, WellSky acquired ClearCare (a provider of web-based point of care management software solutions for home care agencies), and Health Care Software, a provider of integrated healthcare workflow automation solutions for the long-term post-acute care providers, for an undisclosed amount.
In the first nine months of 2020, there were a total of 132 Digital Health M&A transactions, according to Mercom’s latest Digital Health Funding and M&A report.
Image Credit: CarePort Health