Medical technology provider Computer Programs and Systems Inc. (Nasdaq: CPSI) is adding health care software company Healthland Holding Inc. from Francisco Partners for $250 million in cash and stock.
The purchase includes Healthland’s American HealthTech Inc. and Rycan Technologies Inc. subsidiaries. Healthland provides software to rural and community hospitals that help them manage finances, along with patient data and medical records, designed to improve treatment and results. Francisco acquired Healthland in 2007. CPSI is paying 65 percent cash and 35 percent in common stock. Under Francisco’s tenure, Healthland purchased American HealthTech in 2013 and Rycan in 2015.
The combined company is expected to have about $300 million in revenue by the end of 2015 and will serve more than 1,200 hospitals.
Health care software companies have been receiving high interest as hospitals and other facilities look to cut costs while improving patient results.
Earlier in 2015, Chartis Group bought IVantage Health Analytics, which produces financial and clinical information to hospitals and Thoma Bravo completed its purchase of MedeAnalytics, a provider of financial performance data to health care organizations.
Allen & Co., Maynard Cooper & Gale PC, Paul Weiss Rifkind Wharton & Garrison LLP are advising CPSI. Shearman & Sterling is representing Healthland.