Allscripts-Misys Healthcare Solutions has reported that its board of directors has approved a stock repurchase program, under which Allscripts may purchase up to $150 million of its common stock over the next two years.
Additionally, the Chicago-based Allscripts said it has entered into the agreement with Misys plc and certain of its affiliates, whereby Misys will sell to Allscripts the number of shares of Allscripts common stock needed to keep Misys' ownership percentage unaffected by the open market repurchases. Repurchases of Misys' stock will be made at the weighted average price at which repurchases are made by Allscripts under the open market plan. All repurchases under the program are subject to compliance with applicable laws and regulations.
The company said that there is no guarantee as to the exact number of shares or value thereof that will be repurchased under the stock repurchase program, and Allscripts may discontinue purchases at any time.
"We plan to use our strong balance sheet and cash flow to initiate a share repurchase program that will benefit all of our shareholders and will capitalize on the underlying value of Allscripts and our position as the clear leader in the healthcare information technology industry," said Glen Tullman, CEO of Allscripts.
Allscripts also said it has entered into an amendment and restatement of its credit facility, agented by JPMorgan Chase Bank, which increases commitments under the facility by $50 million to $125 million and adds Fifth Third Bank as syndication agent and co-lead arranger. The credit facility also may be expanded by an additional $25 million to $150 million, the firm said.