Irvine-based Quality Systems to buy San Diego’s HealthFusion for up to $190 million

Irvine-based Quality Systems Inc. said Friday it has agreed to buy San Diego-based HealthFusion Holdings for up to $190 million.

Quality Systems, which sells practice management and electronic health records software to medical and dental groups, said it would pay $165 for HealthFusion plus an additional amount of up to $25 million contingent on hitting certain revenue targets in 2016.

Quality Systems posted revenue of $490 million in its fiscal 2015, which ended on March 31. That was an increase of $45 million, or 10.1 percent, from $445 million a year earlier.

Despite the strong revenue growth, the company’s stock has tumbled sharply in recent years – from a 5-year high of $50.05 a share in September 2011 to a low of $12.26 earlier this month. It closed Friday at $14.05, down 25 cents or 1.8 percent on the day.

HealthFusion develops web-based software for physicians, hospitals and medical billing services.

Source : http://www.ocregister.com/2015/10/30/irvine-based-quality-systems-to-buy-san-diegos-healthfusion-for-up-to-190-million/

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