Healthcare DIVE October 14, 2020
Dive Brief:
- Health IT giant Allscripts has entered into a definitive agreement to sell its CarePort Health patient care coordination business to WellSky, a health software company, for $1.35 billion.
- The sale price represents a multiple greater than 13 times CarePort’s revenue of about $100 million and 21 times its adjusted earnings before interest, taxes, depreciation and amortization of about $60 million over the trailing 12 months — significantly above Wall Street’s valuation of the business, analysts noted.
- The transaction is expected to close before the year’s end. Allscripts said it plans to use proceeds from the deal to invest in its product line, continue deleveraging its balance sheet and support share repurchases. Allscripts stock skyrocketed about 50% aftermarket...
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