Misys announces health merger with Allscripts

Source: Healthcare Exec

Date :18/03/2008 00:50:35

Misys Plc, the U.K.'s third- biggest software maker said Tuesday Monday it has agreed to merge its health-care unit with U.S. medical software maker Allscripts Healthcare Solutions Inc.

As part of the merger, Evesham, England- based Misys will contribute $330 million in cash and hold a controlling stake of 54.5 percent in the company, to be called Allscripts-Misys Healthcare Solutions Inc.

The company will be traded on the Nasdaq Stock Market in New York.

Misys will retain control of its banking, Treasury and capital markets division, which will retain its London listing, the companies said in a joint statement.

Enlarged group

ValueAct Capital, the largest shareholder in Misys, will underwrite the 175p-a-share placing and will enlarge its holding from 19.4 percent to 25.8 percent on completion of the deal.

As part of the deal, Mike Lawrie, Misys chief executive, will become executive chairman of the enlarged group. Glen Tullman (pictured), CEO of Allscripts, will become CEO of Allscripts-Misys.

The Board of Directors of Allscripts-Misys will be comprised of ten directors, six of whom will be nominated by Misys, the companies said.

The companies said the transaction will be completed in the third quarter of 2008.

March 18, 2008