Allscripts sells stake in Netsmart for $525M

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Allscripts is selling its stake in Netsmart, a developer of behavioral health, human services and post-acute care technologies, for over $500 million, the Chicago-based health IT company confirmed Dec. 10.

Under the terms of the deal, Allscripts will net after-tax proceeds of about $525 million, or approximately $3 per fully diluted share. The company expects the deal to close by the end of its 2018 fourth quarter.

Allscripts plans to use money from the sale to repay long-term debt, invest in other growing areas of its business, and repurchase its outstanding common stock.

"Allscripts' investment in Netsmart helped create a critical solution for caregivers to achieve the value-based care goal of health communities and populations," said Allscripts CEO Paul Black. "Through our ownership position we quickly generated significant value, and this transaction will be beneficial for our shareholders, our clients and our organization."

Allscripts sold its homecare business to Netsmart in March 2016 in exchange for the largest ownership stake in the company.  

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