Israeli Startup dbMotion Sold To US Firm For $235m
An Israeli healthcare startup that provides doctors with integrated online medical records has been sold to an American company for $235 million in cash and shares.
US Company Allscripts announced Tuesday that it had snatched up Hod Hasharon-based dbMotion along with the US startup Jardogs, which provides cloud-based technology for connecting patients with medical providers. The size of the second acquisition was not disclosed.
“Healthcare physicians and other caregivers need improved care coordination, and these platform technologies put us in a leadership position to deliver on our vision for population health management,” Allscripts CEO Paul Black said about the two purchases.
His company will pay for dbMotion with $145 million in cash, $50 million in Allscripts common stock and $40 million in cash via a note payable within 18 months. Allscripts and dbMotion formed a strategic partnership in 2009 and Allscripts made an equity investment in the company two years later.
Allscripts, which sells systems that enable hospitals and physicians to share patient records electronically, has a market value of $2.15 billion. Its shares closed at $12.57 on Monday in NASDAQ trading.
“Inclusive of these acquisitions and our research and development plan, we will invest approximately $500 million in 2013 to develop the solutions our clients and the market need to deliver individualized quality care across communities,” Black said.
dbMotion's information-sharing system allows medical staff secured access to patients' medical records through any of the sites on the network. For example, emergency room staff can view patients' medical records and history from health maintenance organizations and doctors that treated the patients.
The company was formed in 2004 as a spinoff of Ness Technologies. It subsequently raised $50 million from the Vertex, Gemini and Pitango venture capital funds and from the University of Pittsburgh. Its founders are Ziv Ofek, who is the company's Chief Technology Officer; Assaf Halevi, Senior Vice President of Product Management; and Boris Giterman.