Allscripts to sell medication services business to A-S Medication Solutions

Allscripts-Misys Healthcare Solutions, a provider of clinical software, connectivity and information solutions, has signed a definitive agreement to sell its medication services business to A-S Medication Solutions.

Under terms of the agreements, Allscripts will receive $8m in the fourth quarter, and $3.6m per year for the next five years in return for providing sales and marketing services to A-S Medications. Allscripts will continue to offer medication services to its existing and future clients during that time, and is entitled to receive commissions on new sales generated under the marketing relationship.

Allscripts said that the transaction will allow it to increase the focus on its core business of providing clinical software, connectivity and information solutions to the 160,000 physicians, more than 700 hospitals, and over 7,000 extended care facilities the company serves.

The transaction, which is anticipated to generate total consideration for Allscripts of $26m including income from a joint marketing agreement, is expected to close in the company’s fiscal fourth quarter, subject to customary closing conditions.

The Allscripts medication services business provides point-of-care medication management and medical supply services and solutions for physicians and other healthcare providers.

Glen Tullman, CEO of Allscripts, said: The sale of our medications business is an important step that will enable Allscripts to concentrate our resources at a time when electronic health records and electronic prescribing have received a substantial boost from the economic stimulus law signed last month by president Obama.

It also will provide our former medication service clients with a new partner who is committed to ensuring their continuing success. We look forward to the ongoing strategic relationship with A-S Medications, which we think offers our customers great promise in continuing to deliver a full suite of offerings.