Mike Lawrie, the new chief executive officer at Misys, continues to shake up its Misys Healthcare business unit that is based in Raleigh.
Misys said Sunday that it was selling two business units for more than $414 million.
Vista Equity Partners is buying the Misys Healthcare diagnostic information business for $381.5 million. The unit is based in Arizona and employs some 750 people.
QuadraMed Corporation, meanwhile, will pay $33 million for the Misys CPR business unit. The CPR group operates in San Bernardino, Calif., and employs 50 people.
The impact on the Raleigh operation is not clear at this point other than allowing it to focus on healthcare data, said Misys spokesperson Mike Holsinger.
“We do have people doing works on those projects,” Holsinger said. “As we come to a close on the deals there may be some more changes.”
The company described the sales as “rebalancing” its healthcare operation.
“Our strategy in Healthcare is to focus on our core competency in the ambulatory space,” Lawrie said in a statement issued in London. “Our strategy in Healthcare is to focus on our core competency in the ambulatory space. These disposals rebalance our portfolio and enable us to accelerate execution of our strategy. In addition we have signed commercial agreements with the purchasers that open new distribution channels for our solutions and support our strategy of connecting communities in the higher growth ambulatory sector.”
Lawrie took over as Misys CEO last October after management at that time failed in a bid to take the company private. Tom Skelton, the CEO of Misys healthcare for six years, left in January. Lawrie had been especially critical of the Healthcare business unit’s performance, calling results “unacceptable.”
The Misys Healthcare business operation employs more than 800 people in Raleigh.
Vista Equity partners is acquiring a business unit that generated some $80 million in the fiscal year ended May 31. It had a profit of some $12 million.
The group offers systems for automating of hospital department data.
The CPR unit produced approximately $7.5 million and a loss of some $2 million in fiscal 2006, the company said in a statement.
Both buyers will act as resellers of Misys products following the closing of the deal, Misys said.
Misys plans to use the proceeds of the sales to reduce debt and for general corporate purposes as well as potential acquisitions or a stock buyback plane.
The healthcare unit wants to drive products such as Misys Connect that links physicians and hospitals. It also offers electronic medical record services.
The sales “will help us focus a lot more on the connected community,” Holsinger said in reference to medical data. “That’s where we see a lot of opportunity. We’re working to make [management and sharing] of that data easy.”
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