CPSI completes acquisition of Healthland
Computer Programs and Systems Inc. has completed its purchase of Healthland Holding for around $250 million. Healthland is the parent company of American HealthTech. and Rycan Technologies Inc.
The new CPSI will serve around 1,300 acute care and 3,300 post-acute care facilities and have annual revenues of $300 million. It will employ more than 1,900 workers.
“With this acquisition, CPSI now has a presence in well over 1,000 rural and community hospitals, which represents approximately 28% of the community hospital market. Further, with the addition of American HealthTech post-acute care customers, CPSI will now be servicing the IT needs of approximately 24% of the long-term care market,” said Boyd Douglas, the CEO at CPSI.
CPSI entered into a $175 million senior secured credit facility with Regions Capital Markets, and the agreement includes a five-year $125 million term loan. CPSI's financial advisor was Allen & Company LLC, and Maynard, Cooper & Gale P.C., and Paul, Weiss, Rifkind. Wharton & Garrison LLP served as legal counsel to CPSI. Shearman & Sterling LLP was the legal counsel to Healthland.Healthland bought American HealthTech in 2013.