Vista Equity to take Greenway Medical private for $644 million

Mon Sep 23, 2013 6:11pm EDT

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(Reuters) - Greenway Medical Technologies Inc GWAY.N has agreed to be taken private by Vista Equity Partners for $644 million, less than two years after the medical software provider debuted on the U.S. stock market.

Terms of the deal call for Greenway to combine with Vitera Healthcare Solutions LLC, a privately held electronic health records provider owned by Vista Equity.

Vista will pay $20.35 for each Greenway share — a premium of about 19 percent to the stock's Tuesday close of $17.13 on the New York Stock Exchange. Greenway shares jumped to $20.20 in aftermarket trading.

The company went public in February 2012 and saw its shares reach a life-high of $19.44 in November. The stock has fallen 12 percent from then.

The Carrollton, Georgia company, which offers revenue cycle management and other cloud-based healthcare platforms, reported a net loss of $5.1 million in its 2013 fiscal year that ended on June 30.

The company said stockholders holding owning about 50.9 percent of its shares have agreed to tender in their holdings to the offer and vote in favor of the deal, as have all of Greenway's directors and some of its executive officers.

The combined businesses will serve nearly 13,000 medical organizations and 100,000 providers, Greenway and Vitera said in a statement.

After the deal closes, the Greenway businesses is expected to continue as Greenway Medical Technologies with the products and services of both Greenway and Vitera marketed under the Greenway brand.

Vista Equity invests primarily in software companies and has about $6 billion in assets.

JP Morgan and Paul Hastings LLP are advising Greenway on the deal, while Jefferies LLC and BMO Capital Markets, Kirkland & Ellis LLP are advising the buyer group.

The deal, which is not contingent on financing, is seen closing in the fourth quarter of this year.

(Reporting by Zeba Siddiqui in Bangalore; Editing by Joyjeet Das)

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