Computer Programs and Systems, Inc. (NASDAQ:CPSI), a Mobile, Alabama-based provider of healthcare information solutions to rural and community hospitals, acquired Healthland Holding Inc. and its affiliates, Healthland Inc., American HealthTech, Inc. and Rycan Technologies, Inc., for approximately $250m.
The combined company will support approximately 1,300 acute care facilities and over 3,300 post-acute care facilities, have annual revenues of $300m, and have more than 1,900 employees.
Led by Boyd Douglas, president and chief executive officer, CPSI is a provider of healthcare solutions and services for community hospitals and post-acute care facilities. Founded in 1979, CPSI is now the parent of:
Evident, LLC, which provides comprehensive EHR solutions and services for community hospitals.
TruBridge, LLC, which focuses on providing business, consulting, and managed IT services to community healthcare organizations.
Healthland Inc., which provides integrated technology solutions and services to rural community and critical access hospitals.
American HealthTech, Inc., a provider of financial and clinical technology solutions and services for post-acute care facilities.
Rycan Technologies, Inc., which provides revenue cycle management workflow and automation software to hospitals, healthcare systems, and skilled nursing organizations.
In conjunction with the acquisition, CPSI entered into a $175m senior secured credit facility with Regions Capital Markets, a division of Regions Bank, and Wells Fargo Bank, N.A., as Joint Lead Arrangers, with Regions Bank serving as Administrative Agent.
The credit agreement provides for
(a) a five-year $125 million term loan facility, and
(b) a five-year revolving credit facility of $50 million.