By Greg Roumeliotis and Soyoung Kim
NEW YORK Nov 13 Private equity firms Carlyle
Group LP, Blackstone Group LP and TPG Capital LP
are bidding for Allscripts Healthcare Solutions Inc, a
healthcare technology company exploring a sale, people familiar
with the matter said.
These buyout firms submitted second-round offers on Friday,
a day after Allscripts reported weak quarterly earnings and
following meetings with the company's management last month,
four sources said this week. They asked not to be named because
details of the auction are not public.
Allscripts, which has a market value of around $2 billion,
has asked for a substantial premium to its current trading
prices and there is no guarantee a deal will be reached, the
The private equity bidders are in due diligence and any
decision is still weeks away, they said.
A few other buyout firms that also looked at Allscripts,
including Bain Capital LLC, have decided not to pursue a deal
partly because of the company's high price expectations and
management turmoil, the people said.
Allscripts, Carlyle, Blackstone and TPG declined to comment.
Bain did not immediately respond to requests for comment.
The parties still involved in the process remain concerned
about valuation, as well as Allscripts' declining earnings and
market share losses to larger rivals such as Cerner Corp
, according to the people familiar with the matter.
Allscripts shares are up more than 10 percent since Sept. 28
when Bloomberg reported the company was exploring a sale. The
news agency also reported that Allscripts attracted first-round
offers from Blackstone, Carlyle and Silver Lake Management.
The stock rose 0.5 percent to close at $12.32 on the Nasdaq
market on Tuesday.
Allscripts said last week it was evaluating strategic
alternatives following potential buyout interest and has
enlisted Citigroup Inc to assist with the process.
The auction comes months after activist shareholder
HealthCor Management installed three of its nominees to
Allscripts' board, following a bitter fight with the company's
management led by Chief Executive Glen Tullman.
HealthCor, which owned 7.5 percent of Allscripts as of June
30, sued the company in May to be allowed to launch a proxy
fight after Tullman refused its demand to resign. The company
settled the fight in June, by agreeing to add HealthCor's
candidates to the board.
Tullman said last week that Allscripts' software bookings
fell 39 percent in the third quarter from a year ago and blamed
the results partly on speculation about the company's "future