Allscripts Healthcare Solutions Inc named board member Paul Black as its chief executive officer, replacing Glen Tullman, and said it ended a review of its strategic alternatives.
The healthcare IT company, which has been the subject of takeover interest, said Lee Shapiro will step down as president immediately and will serve as a consultant to Black for up to six months.
"The Board concluded that the best course at this time is to develop Allscripts' long-term potential under the direction of our new management team," Allscripts' Chairman of the Board Dennis Chookaszian said in a statement.
The company's shares had surged in November after it said it was considering strategic alternatives.
Later that month, Reuters reported that Allscripts was being eyed by private equity firms Carlyle Group LP, Blackstone Group LP and TPG Capital LP.
Allscripts' shares were down 16 percent at $9.01 in extended trade on Wednesday.
(Reporting By Ransdell Pierson and Zeba Siddiqui; Editing by Gary Hill and Saumyadeb Chakrabarty)