WASHINGTON (dpa-AFX) - Shares of Allscripts (MDRX) surged 55% in extended trading session Tuesday after the company said it agreed to sell its CarePort Health business to WellSky Corp., a health and community care technology company, for $1.35 billion.
WellSky is jointly owned by private equity firms, TPG Capital and Leonard Green & Partners.
CarePort solutions assist hundreds of hospitals and thousands of post-acute care providers to efficiently coordinate and transition patients through different settings of care.
The agreed sale price of $1.35 billion represents a multiple of greater than 13 times CarePort's revenue over the trailing 12 months.
The transaction is expected to close before the end of the year.
'WellSky is a great company that will provide both an ideal and permanent home for CarePort and its almost 200 team members,' said Rick Poulton, Allscripts President and Chief Financial Officer. 'This agreement is another all-around win for Allscripts as it unlocks significant value for our shareholders, enables us to increase our focus on our core business and brings our CarePort customers the benefit of continued investment under new and very strong ownership.'
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