Healthcare software developer dbMotion Ltd. has been acquired by Allscripts Healthcare Solutions Inc. (Nasdaq: MDRX) for $235 million in cash and shares, the companies announced today. Allscripts will pay $145 million in cash, $50 million of stock and $40 million in cash via a note payable within 18 months.
Allscripts is dbMotion's distributor. The companies initiated a strategic partnership in 2009 and Allscripts made an equity investment dbMotion in 2011. dbMotion technology is a key component of the Allscripts Connected Community of Health. 370 hospitals and 2,800 clinics around the world currently use dbMotion technology.
Founded in 2004, dbMotion is a pioneer in computerized healthcare information and sharing systems. The Hod Hasharon-based company has tens of millions of dollars in annual turnover and 110 employees at its headquarters and technology centers in Ra'anana and Omer. "Globes" named dbMotion as one of Israel's most promising start-ups of 2006.
dbMotion provides a strategic platform for care coordination and population health management that integrates discrete patient data from diverse care settings, regardless of IT supplier, into a single patient record. It provides a longitudinal clinical data repository with semantically normalized patient data, point of care tools, a physician portal, population tools and an analytics gateway. This reduces the cost of care delivery and enables better physician-to-physician care coordination.
"We share Allscripts' vision to create an open, EHR-neutral, connected community of health," said dbMotion chairman and CEO Yuval Ofek. "We look forward to accelerating our mission to impact industry-wide interoperability and to deliver solutions that support new value-based payment models and improve the health of populations."
dbMotion has raised $50 million from Pitango Venture Capital, Gemini Israel Funds, and Vertex Venture Capital and from the University of Pittsburgh Medical Center.
Pitango managing general partner Rami Beracha told "Globes", "dbMotion is at an all-time high by every measure: sales, strategic agreements, team, and management."
"Globes": Given that the company has tens of millions of dollars in sales, and is at a peak, isn't the exit a little disappointing?
Beracha: "The return on investment is good and we're all satisfied. dbMotion does not offer a full solution to the general problem of building a consolidated medical file. For example, AllScripts, which is acquiring it, sells to family healthcare clinics. This is a combination of technology and marketing power. It was obvious that we'd have to link up with someone, and the only questions were to whom and at what terms.
Ofek added, "Until now, we focused on creating value, and as we grew and as our customers' needs expanded, you have to reach the market faster and more deeply. We were able to do this through partnerships, but at some point, we were convinced that the best thing would be to hook up with this worthy partner and sign a deal with it."
Published by Globes [online], Israel business news - www.globes-online.com - on March 5, 2013
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