Athenahealth Inc. closed its deal to spend up to $30 million acquiring software-as-a-service provider Anodyne Health Partners Inc.
The Watertown, Mass.-based electronic medical records provider said it completed the “all-cash” transaction, which called for it to pay $22.3 million up front and up to $7.7 million more, contingent to the achievement of financial milestones, for Alpharetta, Ga.-based Anodyne.
The deal brings Anodyne’s proprietary, web-based business intelligence platform and its more than 14,000 medical provider customers under the Athenahealth umbrella. The software provides a window on all facets healthcare providers’ revenue cycles and the ability to access and extract critical operational and administrative information from a variety of data systems. Anodyne’s business process outsourcing unit is excluded from the acquisition and will be spun out into a separate company before the deal closes.
Athenahealth chairman and CEO Jonathan Bush said his firm made the deal because it believes Anodyne’s platform is the industry’s best web-based offering and offers the best chance to enhance Athenahealth’s existing offerings.
Anodyne will operate as a separate unit of Athenahealth under its own brand, marketing its BI solution on a stand-alone basis. The platform will also be integrated into Athenahealth’s AthenaCollector product.
Athenahealth posted second-quarter profits of $3 million on about $47 million in sales, compared to $2.8 million in profits on $33 million in sales during the same period last year.
Last month, the company said it would guarantee federal stimulus payments to practices that opted to use its services.