Shearman & Sterling is advising Healthland Holding Inc. and its affiliates, Healthland Inc., American HealthTech, Inc. and Rycan Technologies, Inc. on their acquisition by Computer Programs and Systems, Inc. (CPSI), a leading provider of healthcare information solutions to rural and community hospitals.
Healthland, a portfolio company of Francisco Partners, provides electronic health records and clinical information management solutions to over 350 hospital customers. American HealthTech is a provider of 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 contemplated total aggregate consideration to be paid by CPSI is $250 million, payable approximately 65% in cash and 35% in CPSI common stock, subject to certain adjustments at and after closing, as provided for in the merger agreement. The completion of the transaction is subject to review under The Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the satisfaction of other customary closing conditions, and is targeted to close in 2015.The Shearman & Sterling team included partners Michael Kennedy (San Francisco-M&A), Dana Kromm (San Francisco-M&A), Richard Hsu (Intellectual Property Transactions-Menlo Park), Larry Crouch (Tax-Menlo Park) and Gus Atiyah (New York-Finance), counsel Daniel Stellenberg (Menlo Park-Compensation, Governance & ERISA) and Sharon Lippett (New York-Compensation, Governance & ERISA), and associates Lisa Lopshire (San Francisco-M&A), Kirill Levashov (San Francisco-M&A), Benjamin Petersen (Menlo Park-Intellectual Property Transactions), Mark Langer (Menlo Park-Intellectual Property Transactions), Ryan Bray (Menlo Park-Tax), Francisco Cebada (New York-Compensation, Governance & ERISA) and Beverly Chang (Washington, DC-Finance).