July 22, 2007 – Misys Healthcare Systems, a market leader in healthcare IT, signed a definitive agreement today to transfer the ownership of its Diagnostic Systems business to Vista Equity Partners, a leading private equity firm focused solely on investing in software and technology-enabled businesses. The agreement, announced earlier today by Misys plc, covers all business assets, technology and products associated with the current hospital systems diagnostic portfolio, including the Misys Laboratory, Commercial Laboratory, and Clinical Financial products, as well as stand-alone systems for Radiology and Pharmacy departments.
Through the acquisition, Vista gains another strong presence in the acute care market that encompasses a talent base, portfolio and level of diagnostic expertise that is unmatched in the industry. Vista plans to operate the Diagnostic Systems organization as a cohesive, self-sustaining business that continues to provide market leading product development, marketing, sales, service and support for current and future customers. Customers will benefit not only from having consistency and stability in this new organization, but also from the organization’s singular focus on delivering world-class diagnostic solutions.
For Misys Healthcare, the divestiture of its Diagnostic Systems business – including the market-leading Misys Laboratory product – marks a significant turning point for the company that reinforces a new strategic direction and market focus.
“Our strategy, portfolio and organizational alignments are all pointed toward the ambulatory space and the role that segment plays in building connected healthcare communities,” said Vern Davenport, executive vice president and general manager of Misys Healthcare Systems. “While we’re justifiably proud of our reputation in the diagnostic enterprise and the tremendous long-term relationships with Misys Laboratory customers, we’re also willing to make the appropriate business decisions in line with our focus on the ambulatory space. In that regard, we couldn’t be more pleased to announce this deal with Vista that safeguards the interests and investments of all stakeholders in the diagnostic business, most importantly our customers and employees.”
Terms of the agreement establish an ongoing relationship between Misys Healthcare and the Diagnostic Systems business in two important areas. The first area covers the implementation of a detailed transition plan that affects all company functions and provides for the continuity of clinical customer operations. The Diagnostic Systems business has been run largely as a stand-alone operation, and therefore will experience minimal impact in day-to-day operations. Nevertheless, all parties acknowledge the critical role handled by diagnostic systems in acute care settings and will work to ensure a seamless transition.
As part of the transaction, the Diagnostic Systems business will enter into a multi-year strategic agreement to resell Misys Connect and market Misys EMR as its preferred electronic medical record solution for ambulatory physicians. Both parties also will continue to work together to enable current and future products to exchange clinical information as part of a broader connected-community strategy promoted by Misys.
According to Robert F. Smith, Managing Principal of Vista Equity Partners, "We are long-term investors in technology-enabled companies that provide leadership in their markets. We are committed to the healthcare market, as evidenced by our previous acquisition of Surgical Information Systems (SIS), and have long been impressed with the product offerings, vision and market leadership found within the Diagnostic Systems business of Misys Healthcare. We look forward to working with this leadership team to continue to grow our presence in the acute care space. We are also excited that this new business will have a reselling and marketing relationship with Misys Connect and Misys EMR, thus ensuring integration and customer continuity.
The definitive agreement signed today is expected to close by October, subject to Misys shareholder approval and standard business and regulatory conditions practiced in the United States and the United Kingdom.
About Vista Equity Partners
Vista Equity Partners (www.vistaequitypartners.com) is a San Francisco-based private equity firm focused on investing in dynamic, successful software and technology-enabled businesses. Vista seeks to partner with world-class management teams who have a long-term perspective and are committed to maintaining leadership in their markets. Vista is a value-added investor, contributing professional expertise and multi-level support enabling companies to realize their full potential. Vista’s investment approach is anchored by its long-term perspective, as well as its experience in structuring software and technology-oriented transactions and in providing proven management techniques to its portfolio companies.
About Misys Healthcare Systems, LLC
Misys Healthcare Systems develops and supports reliable, easy-to-use software and services of exceptional quality that enable physicians and caregivers to more easily manage the complexities of healthcare. Misys' family of leading clinical products and Web-based technologies are designed to share patient data across medical care settings. Misys makes Community EHR a reality by connecting community-based physicians and caregivers to the acute care enterprise, enabling increased efficiencies, better decision-making and improved hospital-physician relations. For more information, visit www.misyshealthcare.com