Allscripts on Dec. 31 closed the sale of its interests in Netsmart, a developer of behavioral health, human services and post-acute care technologies.
Here are three things to know about the transaction:
1. Allscripts said it would net after-tax proceeds of about $525 million under the terms of the deal, according to the company's initial announcement, which was released Dec. 10 after signing an agreement to sell its stake. In its most recent Jan. 2 announcement, Allscripts said financial details of the transaction would be provided in a future filing with the Securities and Exchange Commission.
2. Allscripts plans to use money from the sale to repay long-term debt, invest in other growing areas of its business, and repurchase its outstanding common stock.
3. Allscripts acquired the largest ownership stake in Netsmart in exchange for selling its homecare business to the company in 2016.
"Allscripts' investment in Netsmart helped create a critical solution for caregivers to achieve the value-based care goal of health communities and populations," Allscripts CEO Paul Black said in December. "Through our ownership position we quickly generated significant value, and this transaction will be beneficial for our shareholders, our clients and our organization."