Blackstone Leads in Problematic Auction for Allscripts: Healthcare Business Recap
The Blackstone Group (NYSE:BX) becomes the frontrunner in a troubled auction for Allscripts-Mysis Healthcare Solutions (NASDAQ:MDRX), but knowledgeable sources say that the parties remain quite distant on valuation and a deal is not at all a certainty. Thus far, Blackstone has prevailed over such competitor private equity suitors as The Carlyle Group (NYSE:CG) and TPG Capital Management in the bidding war to acquire the healthcare tech firm which has a market value of approximately $2 billion. However, the top bidder is said to be dubious about such a deal, due to the high premium that Allscripts wants along with other challenges facing the company. On November 8th, the latter reported that it had recruited Citigroup (NYSE:C) to aid it in evaluating strategic alternatives. Further, Allscripts has recently posted declining earnings and also lost market share to competitors like Cerner Corporation (NASDAQ:CERN), all of which sources say is complicating any sales process that might evolve.
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