Computer Programs and Systems, Inc. ( CPSI ), a provider of healthcare information solutions to rural and community hospitals, said it has entered into a definitive agreement to acquire Healthland Holding Inc. and its affiliates, Healthland Inc., American HealthTech, Inc. and Rycan Technologies, Inc. The $250 million deal is immediately accretive to adjusted earnings per share.
The acquisition will strengthen CPSI's position in providing healthcare information solutions in the markets it serves. It will provide new growth markets for the combined company. CPSI also announced the expansion of its senior management team to lead the company going forward.
Healthland provides electronic health records and clinical information management solutions to over 350 hospital customers. American HealthTech provides clinical and financial solutions in the post-acute care space, serving over 3,300 skilled nursing facilities. Rycan offers SaaS-based revenue cycle management workflow and automation software to over 290 hospital customers.
The total aggregate consideration to be paid by CPSI is $250 million, payable 65 percent in cash and 35 percent in CPSI common stock. The transaction is expected to be more than 35 percent accretive to CPSI's adjusted earnings per share in 2016 and more than 50 percent accretive in 2017.
Further, CPSI said David Dye, in addition to continuing to serve as chairman of the board, has assumed the new role of chief growth officer of CPSI and would be focused on driving growth in all segments of CPSI's business.
Chris Fowler, president of TruBridge, will assume the additional role of chief operating officer of CPSI and will be responsible for managing the integration of Healthland and CPSI. Matt Chambless, currently Director of Financial Reporting, is assuming the role of chief financial officer of CPSI. CPSI also announced that Chris Bauleke has agreed to stay on as president of Healthland.