Allscripts Divests Hospitals & Large Physician Practices Segment For $700M

Allscripts Healthcare Solutions MDRX will sell its net assets of the Allscripts Hospitals and Large Physician Practices business segment to Constellation Software Inc's subsidiary N. Harris Computer Corporation.
The Hospitals and Large Physician Practices business segment includes the Sunrise, Paragon, Allscripts TouchWorks, Allscripts Opal, STAR, HealthQuest, and dbMotion solutions.
Allscripts Veradigm business segment assets are not included in this transaction and will continue to be owned by Allscripts going forward.
The purchase price of up to $700 million cash consists of a fixed price of $670 million paid at closing, plus contingent consideration of up to $30 million based on the performance of the business during the two years following transaction closing.
The transaction is expected to close during the second quarter.
Price Action: MDRX shares traded 1.89% higher at $20.50 during premarket trading on the last check Thursday.