Healthcare information systems developer Misys Healthcare signed a definitive agreement Sunday to transfer the ownership of its Diagnostic Systems business to Vista Equity Partners, a San Francisco-based private equity firm. The agreement 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.
Vista said it plans to operate the Diagnostic Systems organization as a cohesive, self-sustaining business and will continue to provide product development, marketing, sales, service, and support for current and future customers.
Misys Healthcare executive vice president and general manager, Vern Davenport, said that the divesture of its Diagnostics Systems business marks a significant turning point for the company that reinforces a new strategic direction and market focus. Davenport noted that the company’s strategy, portfolio, and organizational alignments are all pointed toward the ambulatory space and the role that segment plays in building connected healthcare communities.
Terms of the agreement establish an ongoing relationship between the Raleigh, N.C.-based 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 in order to ensure a seamless transition, the companies said.
The second area covers a multi-year strategic agreement by the Diagnostic Systems business to resell Misys Connect and market the Misys EMR (electronic medical record) system as its preferred EMR for ambulatory physicians. Both parties said they 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.
The definitive agreement signed yesterday is expected to close by October, subject to Misys shareholder approval and standard business and regulatory conditions practiced in the U.S. and the U.K.