athenahealth, Inc, a provider of Best in KLAS cloud-based services to the healthcare industry, has signed a definitive agreement to acquire a point-of-care solutions provider, Epocrates, Inc, for about $293 million. athenahealth will buy each Epocrate’s share for $11.75, 22% over its market value (closing price) on 4th January, 2013. The transaction is expected to complete by the second quarter of this year and is subject to Epocrates shareholders’ consent and other customary closing specifications.
Founded in 1998, Epocrates provides medical applications (practice tools, clinical content and health industry engagement at the point of care) for Apple, Android and Black berry phones and online solutions to over a million customers. Employing more than 325 employees, the company reported net revenue of $26 million for the third quarter of the fiscal year 2012.
According to the president and CEO of Epocrates, Andrew Hurd, athenahealth and Epocrates being strong and rapidly growing companies that aim to aid physicians deliver quality care efficiently through their knowledge of physician workflows and continuous innovation and intends to enhance data accessibility and redefine healthcare dynamics.
The current acquisition will enable athenahealth to:
- Provide high-value, real-time data to clinicians by integrating information from its cloud-based network, and mobile proficiency of Epocrates
- Establish novel mobile workflows for enhancing provider efficiency and supporting care delivery outcomes. Initially, patient engagement tools, coordination of care, and inter-provider communication will be the main focus areas.
- Expand its customer base of 38,000 physicians and increase brand awareness by incorporating Epocrates’ clients (over a million medical professionals) and building on the latter’s existing brand recognition.
While the acquisition is beneficial to athenahealth, it also proves to be advantageous to Epocrates, with Chairman, CEO, and President of athenahealth, Jonathan Bush, stating that Epocrates will be offered resources and stewardship, necessary for achieving growth and development in the healthcare market. Upon completion of the acquisition, athenahealth aims to include the 40 million de-identified health records it has into the research resources that Epocrates offers to pharmaceutical companies. While Epocrates already has drug reference, athenhealth will help to speed up the development of novel reference tools like consult and diagnostic referencing.
The current acquisition is also expected to provide best possible treatment options to the doctors and support them in the upcoming accountable care market. It would also allow athenahealth’s customers to provide services and utilize references in the same portal.
Apart from Epocrates, athenahealth has also recently acquired Healthcare Data Services (HDS) in September 2012.
Established in 1997, Watertown-MA-based athenahealth employs 2,202 people and provides cloud-based EHR, patient communications, care coordination, medical billing, and practice management services. In the 2012 Best in KLAS Awards: Software & Services, the company has been ranked number one within the practice management and EHR category.