Allscripts announced it will purchase EHR vendor Practice Fusion for $100 million, expanding its portfolio of solutions geared toward small physician practices and ambulatory clinics.
The acquisition was announced in an SEC filing on Friday. Allscripts expects to complete the transaction by the end of the first quarter following a waiting period required under antitrust laws. The filing also hints at a civil investigation into Practice Fusion’s EHR certification.
The deal comes on heels of Allscripts’ $185 million acquisition of McKesson’s health IT portfolio, including Paragon, which is geared towards the small hospital market. Practice Fusion, which is used by 30,000 ambulatory practices, expands Allscripts’ focus on ambulatory care provider and physician practices.
Allscripts is coming off its best quarter of 2017, posting $449 million in revenue during the third quarter, setting the company up to hit the high end of its predicted revenue for the year.
“By adding Practice Fusion offerings to our portfolio, Allscripts will be further positioned for continued growth and long-term leadership in healthcare,” Allscripts President Rick Poulton said in a release. “Combined with Practice Fusion, we expect Allscripts to continue to drive innovation in addressing gaps-in-care, improving clinical outcomes and real-world-evidence research."
“Plus, Practice Fusion’s affordable EHR technology supports traditionally hard-to-reach independent physician practices, and its cloud-based infrastructure aligns with Allscripts forward vision for solution delivery,” he added.
The SEC filing also noted that Practice Fusion received a request from the U.S. Attorney’s Office for the District of Vermont in March 2017 requesting information and documents as part of a civil investigation into the company’s EHR certification. Allscripts stated that although Practice Fusion has complied in “a cooperative, thorough and timely manner,” any legal proceedings, damages or settlements could “adversely impact” future operating results.