Allscripts announces strategic acquisitions of dbMotion and Jardogs
Transactions solidify leadership position in population health management, care coordination and consumer engagement across communities.
Physicians, caregivers and consumers benefit with EHR-neutral, open solutions for a community-based, individually-coordinated health platform
CHICAGO and NEW ORLEANS, March 5, 2013 /PRNewswire/ -- Allscripts acquired dbMotion, Ltd., a leading supplier of community health solutions and Jardogs LLC, the top-rated patient engagement solution provider, both privately held.
Combined with the existing Allscripts Community solution, these new capabilities deliver comprehensive care coordination and population health management across acute, ambulatory, and home care systems.
These acquisitions advance Allscripts' strategy to offer full integration of heterogeneous systems across the care continuum, enabling solutions for a Connected Community of Health™. Leading healthcare organizations, such as Sharp Healthcare, Orlando Health, and Phoenix Children's Hospital have embraced these solutions to gain actionable insights from data to improve their medical decision-making and overall population outcomes.
dbMotion provides a strategic platform for care coordination and population health management that integrates discrete patient data from diverse care settings, regardless of IT supplier, into a single patient record. It provides a longitudinal clinical data repository with semantically normalized patient data, point of care tools, a physician portal, population tools and an analytics gateway. This reduces the cost of care delivery and enables better physician-to-physician care coordination.
The Jardogs FollowMyHealth™ patient engagement platform enables patients to actively participate in their care, critical for at-risk populations, and empowers consumers with the solution they need to monitor and optimize health status. It also provides seamless workflow integration between patients, physicians and other caregivers, including secure health messaging, prescription re-ordering, bill paying and scheduling of appointments.
"Healthcare physicians and other caregivers need improved care coordination, and these platform technologies put us in a leadership position to deliver on our vision for population health management through our Connected Community of Health™," said Paul M. Black , President and Chief Executive Officer of Allscripts. "Inclusive of these acquisitions and our research and development plan, we will invest approximately $500 million in 2013 to develop the solutions our clients and the market need to deliver individualized quality care across communities.
"By solidifying our open connectivity strategy and strengthening our patient engagement offerings, we will accelerate information sharing and population health management, enabling better care," Black continued. "dbMotion serves as the digital key to unlock the open exchange of critical patient information across disparate systems."
Allscripts' acquisition is a natural evolution of a strategic partnership that began in 2009 and was strengthened in 2011 when Allscripts made an equity investment in the company. Since then, Allscripts has become the largest integrator of dbMotion technology, a key component of the Allscripts Connected Community of Health™. Today, 370 hospitals and 2,800 clinics use dbMotion technology globally.
"We share Allscripts' vision to create an open, EHR-neutral, connected community of health," said Yuval Ofek , Chairman and Chief Executive Officer, dbMotion. "We look forward to accelerating our mission to impact industry-wide interoperability and to deliver solutions that support new value-based payment models and improve the health of populations."
Allscripts acquired dbMotion for approximately $235 million in total consideration. This consists of $145 million in cash, $50 million of Allscripts common stock and $40 million in cash via a note payable, due within 18 months. Allscripts will fund the transaction with existing cash and borrowings under its revolving credit facility.
Jardogs offers cloud-based patient and consumer engagement technology that enables communication and collaboration between physicians, caregivers, and medical consumers.
"Improved alignment between FollowMyHealth™ and the Allscripts platforms will benefit clients and patients," said Jim Hewitt , Chief Executive Officer. "We're very excited about connecting patients to their physicians and communities as an integrated extension of Allscripts platform."
Additional benefits resulting from these transactions include control of core strategic platform technologies, improved and consistent client experience as well as the benefit of direct sale economics, including incremental license software margin as well as professional services, hosting and subscription fees.
The Allscripts Board of Directors approved both transactions, unanimously. On an earnings per share basis, Allscripts expects the transactions to be slightly dilutive in 2013 and accretive in 2014.
Allscripts (NASDAQ: MDRX) delivers the insights that global healthcare Physicians and other caregivers need to generate world-class outcomes. The company's Electronic Health Record, practice management and other clinical, revenue cycle, connectivity and information solutions create a Connected Community of Health™ for physicians, hospitals and post-acute organizations. To learn more about Allscripts, visit www.allscripts.com, Twitter, and It Takes A Community: The Allscripts Blog.
dbMotion™ provides an innovative connected healthcare solution that integrates patient information from disparate health information technologies and delivers it to clinicians at the point of care. Harmonizing health information across the enterprise and throughout the community, the dbMotion interoperability solution semantically organizes volumes of data, allowing Physicians and other caregivers to easily access and manage information within familiar workflows. The dbMotion solution bridges clinical settings to facilitate seamless transitions of care and nurture referral relationships. Built on an SOA platform, dbMotion combines health data to present a 360-degree view of the patient's health status to facilitate better care and disease management, and to prepare organizations for healthcare reform. This robust solution has been implemented in the world's most demanding healthcare IT environments since 2001.
Jardogs is a leading provider of patient engagement and health management solutions. With its award-winning technology, Jardogs is increasing the availability of information in everyday lives, while creating new paths of interaction among patients, Physicians and other caregivers and communities. Jardogs solutions are helping healthcare organizations across the nation increase efficiency and improve business outcomes.
© 2013 Allscripts Healthcare, LLC. All Rights Reserved.
Allscripts, the Allscripts logo, and other Allscripts marks are either registered trademarks or trademarks of Allscripts Healthcare, LLC in the United States and/or other countries. All other trademarks are the property of their respective owners.
This press release contains forward-looking statements within the meaning of the federal securities laws. Statements regarding future events or developments, our future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future are forward-looking statements with the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties, some of which are outlined below. As a result, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on our results of operations or financial condition. Such risks, uncertainties and other factors include, among other things: the possibility that the expected synergies, efficiencies and cost savings of the merger with Eclipsys Corporation ("Eclipsys") will not be realized, or will not be realized within the expected time period; potential difficulties or delays in achieving platform and product integration and the connection and movement of data among hospitals, physicians, patients and others; the risk that the Allscripts and Eclipsys businesses will not be integrated successfully; competition within the industries in which we operate; failure to achieve certification under the Health Information Technology for Economic and Clinical Health Act could result in increased development costs, a breach of some customer obligations and could put us at a competitive disadvantage in the marketplace; the volume and timing of systems sales and installations, the length of sales cycles and the installation process and the possibility that our products will not achieve or sustain market acceptance; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; competitive pressures including product offerings, pricing and promotional activities; our ability to establish and maintain strategic relationships; undetected errors or similar problems in our software products; the outcome of any legal proceeding that has been or may be instituted against us; compliance with existing laws, regulations and industry initiatives and future changes in laws or regulations in the healthcare industry, including possible regulation of our software by the U.S. Food and Drug Administration; the possibility of product-related liabilities; our ability to attract and retain qualified personnel; the implementation and speed of acceptance of the electronic record provisions of the American Recovery and Reinvestment Act of 2009; maintaining our intellectual property rights and litigation involving intellectual property rights; risks related to third-party suppliers and our ability to obtain, use or successfully integrate third-party licensed technology; and breach of our security by third parties. See our Annual Report on Form 10-K for 2011 and other public filings with the SEC for a further discussion of these and other risks and uncertainties applicable to our business. The statements herein speak only as of their date and we undertake no duty to update any forward-looking statement whether as a result of new information, future events or changes in expectations.
SOURCE Allscripts Healthcare Solutions, Inc.
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