Francisco Partners, which has bought four health information technology companies in recent years will acquire hospital software vendor QuadraMed Corp. for $126 million in cash.

Under acquisition terms expected to close in early 2010, the San Francisco-based equity firm will pay $8.50 per share for all outstanding shares of QuadraMed stock, taking the company private. The price is 32.6% higher than its $6.41 closing price on Dec. 7. The stock opened for trading on the NASDAQ exchange on Dec. 8 at $8.37 per share.

Reston, Va.-based QuadraMed sells revenue, health information, care and identity management systems, in addition to the QCPR electronic health record system. The company during the first nine months of 2009 had revenue of $106.7 million, down 4.6% from the same period a year ago. Nine-month net income in 2009 totaled $3.75 million, down 17.8%. The company expects to maintain its Reston headquarters and other offices across the nation.

Francisco Partners, based in San Francisco, owns API Healthcare (labor management software), AdvancedMD Software (physician practice management/electronic records) and Healthland (community hospital information systems). It previously owned physician documentation and coding vendor LYNX Medical Systems before selling it to Picis Inc. in 2007.

More information is available at quadramed.com and franciscopartners.com.

--Joseph Goedert

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