Misys has raised 202m pounds ($415.4m) by selling two of its under-performing US healthcare businesses and is set to embrace the open source movement to expand its products range, as CEO Mike Lawrie steps up his turnaround of the company.
Lawrie said the healthcare business were spread too thinly across a vast market so he has decided to concentrate on the physician practices sector and is selling off companies dealing with hospitals.
It plans to sell its Diagnostic Information Business to private equity company Vista Equity Partners for 186m pounds ($381.5m) in cash. The unit, which employs 750 people, supplies systems which automate the processes of hospital departments by managing and classifying large volumes of clinical data. Misys will also sell its CPR Business, which offers a system for collecting and sharing data within hospitals, to QuadraMed for 16m pounds ($33m).
Misys said proceeds from the disposals will be used to reduce debt. It is looking at potential acquisitions and may launch a share buy-back program.
Misys, which is due to reveal its full-year figures today, is also launching an open source division to take advantage of the free code and make its money from integration and maintenance. The first products planned are a carbon trading platform, which has also attracted considerable interest from its banking customers, and a program aimed at patient records. The company has already appointed a head of open source. It allows us to get into segments we are not in today, said Lawrie.