Irvine-based Quality Systems Inc. announced on Friday that it has agreed to buy San Diego-based HealthFusion Holdings for about $190 million. The deal, which still subject to customary closing conditions, is expected to close by March 31, 2016 and Quality Systems expects the deal to add earnings in the first full year.
Rusty Frantz, president and CEO of Quality Systems Inc., said in a statement: “The acquisition of HealthFusion is another example of our strategy to expand both client base and solution capabilities in our ambulatory market. We look forward to sharing this acquisition as a part of our broader strategy with our client base at our annual User Group Meeting in Las Vegas starting this Sunday, November 1.”
“HealthFusion brings an extremely intuitive, fully mobile, cloud-based solution that affords smaller groups of physicians and other providers a clean EHR experience within a fully integrated suite of solutions for their practice. Over time, we will focus on expanding the platform to satisfy the needs of practices of increasing size and complexity. We will also look to provide some of our broader service capabilities to the HealthFusion client base,” CEO Rusty Frantz added.
Founded in 1998 and based in San Diego, California, HealthFusion develops web-based software that currently used by over 3,000 physicians, hospitals and medical billing services ( totalling 6,000 subscribers in more than 30 specialties across all 50 states). The company has two cloud-based fully integrated solutions: MediTouch EHR ( Electronic Health Record and Patient Portal), which serves more than 3,000 practices totalling more than 6,000 subscribers; and MediTouch PM, which was designed for use in mobile devices and offers a unique array of features that facilitate the adoption of EHR technology.
Headquartered in Irvine, California, Quality Systems Inc. develop and sell computer-based practice management, electronic health records, revenue cycle management applications and connectivity services for medical and dental group practices.
The deal will includes an additional payment of up to $25 million if HealthFusion generates certain revenue target in 2016. Quality Systems will fund the deal with $115 million via a credit facility from J.P. Morgan Chase Manhattan Bank and the rest through cash on hand.
The deal comes a week after Quality Systems unloaded its underperforming small hospital business unit that was part of NextGen, selling it to QuadraMed affinity Corporation.