WASHINGTON (dpa-AFX) - Allscripts Healthcare Solutions Inc. (MDRX) is said to be exploring a sale of the company, Bloomberg reported, citing people familiar with the matter.
The Chicago, Illinois-based provider of electronic health records has been in talks with private equities including Blackstone Group LP (BX) for a leveraged buyout and had roped in Citigroup Inc. (C) as its adviser, Bloomberg said.
Allscripts has not responded to the reports of its possible sale, but investors were enthused and its shares surged about 14 percent at the close of markets on Friday.
The surge in Allscripts stock price came as an alleviating factor for investors, given that its price took a beating in April after the company ousted its Chairman Phil Pead in a board dispute and replaced him with Dennis Chookaszian.
The company also settled a proxy war in June with a major shareholder, HealthCor Management LP that called for the ouster of Allscripts CEO Glen Tullman and sought the company put itself on the block.
Allscripts provides clinical, financial, connectivity, and information solutions to hospitals, physicians, and post-acute organizations. But the company has had to grapple with weak contract bookings as healthcare firms pruned their expenses.
Last month, Allscripts reported a plunge in quarterly profit as higher costs weighed on the bottom line, even as its revenues improved. Allscripts also lifted its adjusted earnings outlook for the full year 2012. The company currently has a market capitalization of about $2.3 billion.
Shares of Allscripts closed Friday at $12.42, up 14.15%, on a volume of about 22 million shares on the Nasdaq. In after hours, the stock further gained 1.13%. In the past year, the stock traded in a range of $8.84 - $21.66.
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