Jefferies Likes Merger Of Allscripts-Misys Healthcare Solutions (MDRX) And Eclipsys (ECLP)

Jefferies & Company analysts Richard Close, Dana Hambly and Sean Dodge said that if the merger of Allscripts-Misys Healthcare Solutions Inc MDRX and Eclipsys Corporation ECLP goes through, the deal will alter the competitive balance in the HCIT segment. The analysts said that the merger of Allscripts-Misys Healthcare Solutions and Eclipsys would make the combined company more competitive in the hospital/physician market. They went on to say that the merger would lower the win rates of the company's competitors, or at the very least pose a significant challenge to them. The Jefferies & Company analysts wrote, "Ideally, the timing of this deal would have been better well ahead of the imminent Stimulus (ARRA) opportunity so a integrated product offering could be marketed to interested hospitals and physicians. Despite this, the fact of little overlap in customer and products we believe reduces risk of delayed purchasing and product integration concerns (to some extent). The deal should allow MDRX/ECLP to be a viable vendor in some deals the individual companies would not be included in as separate entities. We believe that MDRX/ECLP perception as viable alternative to Epic or Cerner is enhanced."