Allscripts to buy rival Eclipsys

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Allscripts, the US healthcare IT firm which is majority owned by FTSE 250-listed Misys, is to buy rival group Eclipsys in a $1.3bn deal.

Ahead of the all-share transaction, Misys said it will sell the bulk of its 55 per cent stake in Allscripts, and return the proceeds to shareholders.

The news prompted a rally in Misys shares, which soared by as much as 26 per cent.

Eclipsys investors stand to receive 1.2 Allscripts shares per Eclipsys share, representing a 19 per cent premium to Tuesday's closing price.

The combined group will boast a client base of over 180,000 American doctors and some 1,500 hospitals.

Allscripts' chief executive, Glen Tullman, will take over as the CEO of the new company, while Eclipsys' chief executive, Phil Pead, will take over as chairman of the combined group, which will be a leader in electronic health records.