- Quality Systems (QSII) is acquiring HealthFusion, a provider of cloud-based electronic health record (EHR) and patient billing software, for $165M in cash up-front + up to $25M in contingent payments.
- QSII: "HealthFusion's 100 percent cloud-based MediTouch platform is currently used by over 3,000 physician practices, hospital ambulatory centers and medical billing services (totaling more than 6,000 subscribers). The company has historically achieved meaningful double-digit annual revenue growth rates, with a recent annualized revenue pace exceeding $30 million. The contingency for full payment of the earn-out is based on the generation of $43 million of HealthFusion product revenues during calendar 2016."
- The company plans to finance $115M of the purchase price through a $200M credit facility, and the rest via cash on hand. For reference, QSII closed today with an $855M market cap, and had a 2015 revenue consensus of $501.1M.