Allscripts announced Wednesday a deal with General Electric to repurchase 1.25 million shares of its common stock from the company. General Electric holds over 7 million shares of Allscripts stock which was acquired when GE purchased IDX Health Systems, a deal which closed last month.
Allscripts said the agreement is to buy back the shares from GE at the same price level it will sell its stock at in an upcoming public offering which was announced last week. The company revealed that it plans to offer 7.3 million shares which will translate into $135.6 million for the sale.
Allscripts will use this amount to finance its planned acquisition of A4 Health Systems Inc.
The terms of the agreement include that GE will lock-up the remaining portion of their shares for 60 days from the pricing of the offering.
"We manage our investment portfolio separately from our business relationship with Allscripts, which was amended earlier this year. We continue to value our relationship with Allscripts," said Michael Jones, executive vice president, business development, GE Healthcare.