British banking and healthcare firm Misys plc has announced the sale of two segments of its American-based healthcare unit to focus on the ambulatory care market.
The company announced on Sunday that it has sold its Tucson, Ariz-based Diagnostic Systems business, including Misys Laboratory, Commercial Laboratory and Clinical Financial products as well as stand-alone systems for Radiology and Pharmacy departments, to Vista Equity Partners, a San Francisco-based private equity firm, for $381.5 million.
"Our strategy, portfolio and organizational alignments are all pointed toward the ambulatory space and the role that segment plays in building connected healthcare communities," said Vern Davenport, executive vice president and general manager of Raleigh, N.C.-based Misys Healthcare Systems. "While we are justifiably proud of our reputation in the diagnostic enterprise and the tremendous long-term relationships with Misys Laboratory customers, we're also willing to make the appropriate business decisions in line with our focus on the ambulatory space."
As part of the deal, the Diagnostic Systems business will enter into a multi-year agreement to resell Misys Connect and market Misys EMR as its preferred EMR solution for ambulatory physicians.
In another move announced Sunday, Misys is selling its San Bernardino, Calif.-based Computerized Patient Records business to the Reston, Va.-based QuadraMed Corporation for $33 million in cash.
QuadraMed officials welcomed the deal as an important addition to their company's product line.
"Adding the CPR product to QuadraMed's suite of healthcare solutions is a key step in our plan to accelerate QuadraMed's growth while delivering on our care-based revenue cycle strategy," QuadraMed CEO Keith Hagen said." As a result of this acquisition, QuadraMed will be positioned to support the clinical information systems needs of large complex hospitals and healthcare delivery systems, particularly those focused on full clinical integration, clinical decision support and computerized physician order entry."
"These disposals rebalance our portfolio and enable us to accelerate execution of our strategy," Misys Chief Executive Mike Lawrie said.
Misys, which had announced in March the launch of a three-to five-year turnaround plan for its struggling healthcare unit, said proceeds from both sales would be used to pay down debt, giving the company maneuverability to make future business moves.
Lawrie, formerly of IBM and ValueAct Capital, came to Misys last year following a failed management buyout by company founder Kevin Lomax, which prompted his resignation.
News reports indicate the company also plans to announce this week that it will shift to "open source" management, rather than selling proprietary software.