Toronto, Canada, March 2, 2022 — Constellation Software Inc. (“Constellation”) (TSX:CSU) announced today that it has, through its wholly-owned subsidiary, N. Harris Computer Corporation (“Harris”), completed an agreement with Allscripts Healthcare Solutions (“Allscripts”) (NASDAQ:MDRX) to acquire the net assets of Allscripts’ Hospitals and Large Physician Practices business segment. The Hospitals and Large Physician Practices business segment includes the Sunrise™, Paragon®, Allscripts TouchWorks®, Allscripts® Opal, STAR™, HealthQuest™ and dbMotion™ solutions. The assets of Allscripts Veradigm business segment are not included in this transaction and will continue to be owned by Allscripts going forward.
“We have been watching and admiring the hospitals and large physician practices franchise for many years,” said Harris CEO Jeff Bender. “We believe that we are the perfect forever home for the many talented employees and loyal customers that are the backbone of the franchise. We are excited to begin the next chapter in our Harris story, continuing to serve those who serve us in the communities where we live, by partnering with healthcare professionals to deliver care that improves lives.”
Jerry Canada, Harris Group President for Healthcare, added, “Allscripts has a long and rich history of providing solutions to healthcare organizations. 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. I have personally been fortunate to engage with the leadership team during this process and I am looking forward to exploring and realizing our potential together.”
“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. We think this transaction maximizes focus as well as future opportunity for our clients, our more than 7,500 associates and our shareholders,” said Paul M. Black, Allscripts Chief Executive Officer. “Harris has demonstrated excellence in software development, customer satisfaction and worldwide growth in healthcare. We are pleased that our solutions will be a key strategic component of Harris’ plans to become leaders in digital health. As the cornerstone in the Harris portfolio, we are proud that our customers will continue to benefit from a true platform of health.”
The purchase price consideration is up to US $700 million cash, consisting of a fixed price of $670 million to be paid at closing, plus contingent consideration of up to $30 million based on performance of the business during the two years following transaction closing. Completion of the transaction is subject to regulatory approval and customary closing conditions. The transaction is expected to close during the second quarter of 2022. Allscripts’ Hospitals and Large Physician Practices gross revenue for the period ended December 31, 2021 was US $928M. Constellation expects to finance the Allscripts acquisition on a stand-alone basis.
About the Harris Operating Group
Harris 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. Further information about Harris may be obtained from its website at www.harriscomputer.com.
About Constellation Software Inc.
Constellation’s common shares are listed on the Toronto Stock Exchange under the symbol “CSU”. Constellation acquires, manages and builds vertical market software businesses.
Allscripts (NASDAQ: MDRX) is a leader in healthcare information technology solutions that advance clinical, financial and operational results. Our 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. To learn more, visit www.allscripts.com, Twitter, YouTube and It Takes A Community: The Allscripts Blog.
For further information, contact:
Constellation Software Inc.
Jamal Baksh, Chief Financial Officer
Tel: (416) 861-9677