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Two of healthcare's information technology leaders are merging
Two of healthcare’s information technology leaders, Greenway Medical Technologies and Vitera Healthcare Solutions, are merging, according to an announcement released by Greenway. The combined companies will serve 13,000 medical organizations and 100,000 providers.
Vitera’s owner, Vista Equity Partners, is acquiring all outstanding Greenway stock for $20.35 per share. In total, the transaction is valued at $644 million. Vitera’s award-winning electronic health records (EHR) system has been ranked first place by Black Book Market Research and has received industry praise. Based in Tampa, Florida, Vitera’s EHR and practice management systems currently serve 415,000 healthcare professionals.
“Combining our business with Greenway Medical Technologies demonstrates our intense focus on growth and our commitment to provide current and prospective customers with proven, integrated and easy-to-use solutions they need to grow profitably, increase practice efficiencies and improve patient outcomes in this ever-changing healthcare environment,” said Matthew J. Hawkins, president and chief executive officer of Vitera.
Greenway, based in Carrolton, Georgia, also produces EHR and practice management systems. Once the transaction is complete, both Vitera and Greenway’s products will be marketed under the Greenway brand.
According to the merger announcement, the company’s first priorities will be enhacing its systems to meet Meaningful use 2, payer reform, and the International Classification of Diseases-10th revision (ICD-10) requirements. The companies will continue principal operations in Georgia, Florida and Birmingham, Alabama.
Tee Green, president and chief executive officer of Greenway says the merger will help both companies develop tools to help improve population health by leading the “electronification of healthcare, engaging consumers to manage their own health.”
This merger offers a glimpse into what is predicted to be a mass consolidation of the healthcare information technology industry. According to investment bank Berkery Noyes, healthcare information technology mergers increased 21% between 2011 and 2012 from $11.36 billion to $11.96 billion, respectively.