King & Spalding is representing Atlanta-based Eclipsys Corp. in its planned $1.3 billion merger with Allscripts-Misys Healthcare Solutions Inc.
The companies, which among other things provide software for electronic health records and revenue management, announced the all-stock deal Wednesday morning. Chicago-based Allscripts’ majority owner, the British company Misys, plans to cut its 55 percent stake in Allscripts to 10 percent via a secondary stock offering and buyback slated to occur in four to six months.
The merger announcement says the union will result in a combined client base of more than 180,000 U.S. physicians, 1,500 hospitals and nearly 10,000 nursing homes, hospices and home-care organizations. Before closing, the companies must secure shareholder approval, and Allscripts must get debt financing sufficient to complete its share buyback. The company already has secured financing agreements from JP Morgan, Barclays Capital and UBS for $720 million in senior secured credit facilities, according to the announcement.
Allscripts is represented by Sidley Austin and Vedder Price; Misys is represented by Allen & Overy.