Chicago-based Allscripts has signed an agreement to acquire parts of Los Angeles billionaire Patrick Soon-Shiong’s NantHealth business.
Health care technology firm Allscripts will exchange 15 million of its shares in NantHealth for certain “technology assets” and client relationships now owned by NantHealth. NantHealth said in a news release late last week that the sale will allow it to better focus on using artificial intelligence to help fight cancer. The deal is expected to close in the third quarter of this year.
Allscripts spokeswoman Concetta Rasiarmos said in an email Monday that the companies “restructured” their relationship “to better align the long-term commercial interest between Allscripts and NantHealth.”
Allscripts also announced earlier this month it had entered into an agreement to buy McKesson Corp.’s hospital and health system information technology business for $185 million. That deal is expected to close in the fourth quarter of this year.
Allscripts, which is headquartered at Chicago’s Merchandise Mart, has about 7,000 employees. The company reported a loss of $153.7 million in the three months ended June 30.
NantHealth also announced Thursday that it plans to cut 300 positions, which will include “the transfer of some number of personnel to Allscripts.” Those changes and others are projected to save NantHealth $70 million annually, the company said in the news release.
NantHealth reported $70.1 million in losses for the quarter that ended June 30.
“The actions we have taken and are taking are the result of methodical detailed analysis, which we believe will allow us to be one of, if not the leading cancer company driving 21st-century delivery of care,” NantHealth spokeswoman Jen Hodson said Monday in a statement.
Soon-Shiong is the second-largest shareholder of Tronc, which owns the Chicago Tribune.
