Allscripts on Wednesday announced that it is buying Netsmart Technologies in a joint venture with private equity firm GI Partners.
Under terms of the deal, Allscripts will merge Netsmart’s CareFabric suite of care coordination and clinical innovation services and tools with Allscripts Homecare business unit and, once completed, the new company will take the Netsmart name.
GI Partners characterizes the move as establishing Netsmart as the largest human services and post-acute technology provider in healthcare.
GI Partners will provide investments and resources that will allow Netsmart to more rapidly accelerate ongoing expansion into the evolving integrated healthcare technology sector, GI executives said.
Netsmart provides technology designed especially for the health and human services sector, enabling business processes including electronic health records, patient management, billing, scheduling and clinical care delivery.
Allscripts’ homecare business is a fully integrated system for both large and small home care organizations, automating point of care processes as well as patient intake and billing.
The combination of Netsmart and Allscripts’ homecare business creates an electronic health record leader in the human services and post-acute spaces with full revenue cycle management and hosting capabilities, Dave Kreter, Director of GI Partners, said in a news release.
Netsmart CEO Mike Valentine agreed, adding that over the last five years, Netsmart invested heavily in new product development, improved technology and cloud capabilities and grown the company, both the number of clients and tripling the number of associates working for Netsmart.
Terms of the deal were not disclosed. The companies said they expect the combined organization to earn $250 million in annual revenue and $60 million in annual operating income.
