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Allscripts Completes Sale of EPSi Business to Strata

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Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) recently announced that it has completed the previously announced sale of its EPSi business to Strata Decision Technology (Strata) on Oct 15, 2020, for $365 million. Notably, on Jul 30, 2020, Allscripts entered into a definitive agreement with Strata to sell EPSi — a leading provider of decision support and planning tools for hospitals and health systems.

Notably, Strata is a global leader in the development of cloud-based financial planning, analytics and performance tools for healthcare. It is worth mentioning that post completion of the sale, EPSi’s customer base and associates will move to Strata.

This divestment is likely to boost Allscripts’ long-term growth prospects.

More on the News

The combination of the two companies will lead to the formation of an important company that can address one of the most important issues faced by healthcare — the cost of it. It is to be noted that the COVID-19 pandemic has resulted in substantial rise in the cost of care, and massive declines in both patient and procedure volume.

This has resulted in one of the biggest financial crisis in history of healthcare. However, with the integration of these two companies, the healthcare providers are likely to get a set of innovative solutions and services, which will enable them to plan, analyze and perform efficiently. This, in turn, will help healthcare providers to offer care in the communities they serve.



Notably, the transaction is a triple win for EPSi clients and Allscripts’ shareholders as it will allow Allscripts to effectively recirculate capital, enhance focus on core businesses, and bring the benefit of sustained investment under new and robust ownership to customers at EPSi.

Recent Developments

In August 2020, Allscripts was awarded five separate patents over the period of only eight days, which underscores its commitment toward delivering unique solutions to clients. The move also highlights its substantial momentum in health IT innovation. Notably, Allscripts’ robust patent program is anticipated to add several additional patents throughout the remaining period of 2020 via innovation to enhance care delivery and connect the overall patient experience.

Also, in the same month, the company collaborated with Israel’s Sheba Medical Center to accelerate the pace of artificial intelligence technologies and boost patient care through the hospitals’ ARC (acronym for accelerate, redesign and collaborate) Innovation Center. Notably, ARC is the innovation unit of Sheba Medical Center and aims to transform healthcare by 2030.

Price Performance

Over the past six months, shares of the Zacks Rank #3 (Hold) company gained 67.2% compared with the industry’s rally of 49.9%.

Stocks to Consider

Some better-ranked stocks from the broader medical space include DaVita Inc. (DVA - Free Report) , Boston Scientific Corporation (BSX - Free Report) and Thermo Fisher Scientific Inc. (TMO - Free Report) . While Boston Scientific carries a Zacks Rank #2 (Buy), both DaVita and Thermo Fisher sport a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita has a projected long-term earnings growth rate of 11.9%.

Boston Scientific has an estimated long-term earnings growth rate of 10%.

Thermo Fisher has a projected long-term earnings growth rate of 15.5%.

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