Physician software vendor Vitera Healthcare Solutions, through its private equity firm owner Vista Equity Partners, will acquire rival vendor Greenway Medical Technologies for approximately $644 million.

Vitera sells the Intergy practice management and electronic health records software and continues to support the Medical Manager practice management product. Greenway sells its single-database practice management/electronic records software under the name PrimeSUITE.

Vista will pay $20.35 for each share of Greenway stock, which recently has traded in the $16 range. Greenway had spotty financial performance during fiscal 2013 that ended on June 30 as it, like multiple other vendors, is seeing a shift to cloud-based subscription services that increase recurring revenue but can adversely affect overall revenue and profitability during the transition. In fiscal 2013, the company saw revenue increase nine percent to $134.8 million as recurring revenue increased by 31 percent. Greenway had a fiscal 2013 net loss of $5.06 million compared with $2.9 million in net income during fiscal 2012.

Upon closing of the deal, both companies will operate as Greenway Medical Technologies, will market their products and services under the Greenway name and retain their offices in Carrollton, Ga.; Tampa, Fla.; and Birmingham, Ala. Combined, they will serve almost 13,000 organizations and 100,000 physicians. “For the time being, both companies will continue to operate business as usual,” a Vitera spokesperson tells Health Data Management. “The teams will be working together on integration planning between now and the closing. We don’t have any additional details at this point.”

Shareholders collectively owning 50.9 percent of Greenway stock have agreed to vote their shares in favor of the acquisition, which the vendors expect to close during the fourth quarter of 2013. Neither vendor would discuss the senior management roster of the combined company, the timetable for integration, or whether customers will be transitioned to a single product line. Quotes from a press release, however, may indicate that Greenway is the preferred product going forward.

“This transaction presents an opportunity to offer even greater value to our customers,” said Matthew Hawkins, president and CEO of Vitera. “Combining our business with Greenway Medical Technologies demonstrates our intense focus on growth and our commitment to provide current and prospective customers with proven, integrated and easy-to-use solutions they need to grow profitability, increase practice efficiencies and improve patient outcomes in this ever-changing health care environment.”

“We are excited that the transaction will accelerate the execution of our clearly defined strategy of leading the ‘electronification’ of health care, engaging consumers in the management of their own health and continuing to partner with providers developing the tools to improve population health.”

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