On March 2, 2022 Allscripts announced that it had entered into an agreement with Constellation Software to allow them to acquire the net assets of the electronic health record vendor’s hospital and large physician practice business. Constellation Software Computer Corporation could pay up to $700 million for the business segments. This deal is expected to close in the second quarter of 2022.

Allscripts is a software development company that is located in Chicago, Illinois and was founded in the early 80’s. Allscripts is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Their innovative solutions connect people, places and data across an open, connected community of health. Connectivity empowers caregivers to make better decisions and deliver better care for healthier populations.

In 2020, Allscripts executed a couple of major sales to Strata Decision Technology and WellSky. Strata Decision Technology completed its $365 million acquisition of Epsi, which was Allscripts healthcare decision analytics and budgeting business. Following that sale, Allscripts then sold their care coordination business to WellSky for $1.3 billion.

“The medical industry we faithfully serve has gone through tremendous change and the needs of the customers in our different business segments continue to evolve in different ways,” said Paul Black, Allscripts CEO, in a statement. “We think this transaction maximizes focus as well as future opportunity for our clients, our more than 7,500 associates and our shareholders.”

News of the announcement lead to a 7% rise in the company’s shares.

Constellation Software is a Canadian diversified software company. Constellation Software was founded in 1995 and is based in Toronto, Canada. Constellation Software is an international provider of market leading software and services to a select number of industries, both in the public and private sectors. Their mission is to acquire, manage and build market-leading software businesses that develop specialized, mission-critical software solutions to address the specific needs of particular industries.

Constellation Software is wholly-owned through its subsidiary, N. Harris Computer Corporation. The N. Harris Operating group provides mission critical software solutions for the Public Sector, Healthcare, Utilities and Private Sector verticals throughout North America, Europe, Asia and Australia.  Harris’ focus is on creating long-term relationships with its customers and ensuring that it meets the changing needs of its customers over time.

"Allscripts has a long and rich history of providing solutions to healthcare organizations," said Harris Group president for healthcare Jerry Canada. "Harris is excited to welcome the staff and customers that helped make Allscripts a success in the hospitals and large physician practices segment. We believe that the employees and customers of both organizations will benefit from the possibilities created by this forever relationship."

Allscripts business segment was expected to shrink for the third year in a row in 2022, while its Veradigm business has continued to grow. In 2021, the data analytics business delivered double-digit gains in the second quarter.

Proceeds from the deal will be used to support strategic M&A for Veradigm as well as continued share repurchases.