A major health IT company in Carrollton is being acquired in a deal valued at about $644 million.
Greenway Medical Technologies has announced an agreement for it to be purchased by Vista Equity Partners, a private equity firm that owns another health IT company, Vitera Healthcare Solutions.
The merged entity will continue operations in the west Georgia city as well as in Tampa, where Vitera is located, and in Birmingham, Ala.
The combined company is expected to use the Greenway name and serve nearly 13,000 medical organizations and 100,000 providers.
The Greenway board has unanimously approved the merger agreement, the company said Monday. Under the terms of the agreement, Vista Equity Partners will pay Greenway stockholders $20.35 in cash for each share of Greenway common stock they hold. Once the deal is completed, the new Greenway will operate as a privately held company.
A spokeswoman for Greenway said Tuesday that a CEO for the merged company has not yet been named.
Greenway Medical Technologies recently completed an expansion that added 300 jobs, fueled by the growth of its electronic medical records business.
Georgia has become known as a leading player in the health information technology business.
Revolutionary changes in how health care payments are made and how clinical information is exchanged — partly sparked by incentives in the Affordable Care Act — have created an industry boom, a Greenway spokesman told GHN recently.
A cluster of health IT companies has sprouted in Georgia in recent years, especially in the Atlanta area. Recently, Healthcare Informatics Magazine listed nine Georgia companies among the Top 100 health IT firms in the nation, including Greenway at No. 53.
“We are pleased to approve this agreement and look forward to completing this transaction,” Tommy Green, founder of Greenway Medical Technologies and chairman since the company’s inception in 1998, said in a statement. “It provides substantial cash value for our stockholders, and reflects our deep commitment to drive innovation that helps health care professionals succeed and thrive in today’s evolving health care landscape.”
Added Tee Green, president and CEO of Greenway, “We are excited that the transaction will accelerate the execution of our clearly defined strategy of leading the electronification of health care, engaging consumers in the management of their own health and continuing to partner with providers to develop the tools to improve population health.”