Two providers of clinical software, information and connectivity solutions for physicians, Chicago-based Allscripts and Atlanta-based Eclipsys, have announced a definitive agreement to merge in an all-stock transaction valued at approximately $1.3 billion. Under the terms of the merger agreement, Eclipsys stockholders will receive 1.2 shares of Allscripts for each share of Eclipsys.
The combined company’s client base will include over 180,000 U.S. physicians, 1,500 hospitals, and nearly 10,000 nursing homes, hospices, home care and other post-acute care facilities.
Glen Tullman, Chief Executive Officer of Allscripts, will be the Chief Executive Officer of the combined company. Phil Pead, President and Chief Executive Officer of Eclipsys will become Chairman of the combined company. The combined company’s executive team will include the current officers of both Allscripts and Eclipsys.
The merger will be subject to stockholder approvals from both companies, but the companies expect the deal to close in approximately four to six months. The combined company will have more than 5,500 employees.