Practice Fusion, a US-based electronic medical record platform backed by mobile chipmaker Qualcomm, yesterday accepted a $100m acquisition offer from healthcare technology producer Allscripts.
Founded in 2005, Practice Fusion operates a cloud-based electronic health records database aimed at small and independent doctors’ surgeries. The platform currently supports five million patient visits across 30,000 practices each month.
The purchase price marks a significant loss in valuation for Practice Fusion and could still change, with the figure being “subject to adjustment for working capital and net debt”.
Practice Fusion hired investment bank JPMorgan Chase in 2015 to explore an initial public offering in 2017 that would have valued the company at up to $1.5bn, based on projected revenues of $181m in 2018. The IPO was put on halt due to market volatility.
Allscripts will integrate the company’s platform with its own outpatient care offering, with a particular focus on driving its big data analytics, data sharing technologies and clinical trial services.
Practice Fusion had raised more than $150m in funding having most recently received an undisclosed amount from Orix Growth Capital, the venture capital arm of financial services firm Orix USA, in 2016, after securing $2.5m from unnamed investors in 2014 according to a regulatory filing.
Qualcomm unit Qualcomm Ventures co-led the $15m second tranche of the company’s $85m series D round in December 2013 with Longitude Capital, investing together with Artis Ventures, Industry Ventures and Band of Angels at a $700m post-money valuation.
The first $70m was raised by Practice Fusion the previous September. It was led by Kleiner Perkins Caulfield & Byers, with contributions from Band of Angels, Artis Ventures, OrbiMed Advisors and Deerfield Management.
Practice Fusion had previously received a total of $64m from investors including Artis Ventures, Felicis Ventures, Band of Angels, Glynn Capital, Founders Fund, Morgenthaler Ventures, SV Angel and Ghost Angel across four rounds between 2009 and 2012.