Charlotte-based health solutions company Premier Inc. said Tuesday it has reached an agreement to purchase Pittsburgh-based CECity Inc. for $400 million.
CECity, a privately held company, specializes in improving electronic health care reporting, pay-for-value reporting and continuing medical education.
The deal is expected to close in Premier’s fiscal first quarter that ends Sept. 30 and is subject to regulatory approval, according to a statement from Premier Tuesday.
Susan DeVore, president and chief executive officer of Premier, said the acquisition will better enable Premier to provide performance improvement technology for health care professionals in a rapidly changing market.
“These capabilities are critical given the ongoing movement toward population health, as well as emerging Medicare requirements for all physicians to start reporting on a range of new performance measurements,” she said.
Premier outlined a number of additional benefits of combining with CECity. It will be able to, for example, provide one consolidated source for ambulatory and acute care performance management. Premier also will be able to automate the flow of information directly from physician practices to clinical data registries.
CECity and the 134 people it employs or contracts will continue to work out of the company’s Pittsburgh headquarters as part of Premier’s performance services segment “for the foreseeable future,” Premier said.
Premier expects the deal will boost its earnings per share by about 2 to 4 cents in fiscal 2016 and 8 to 10 cents in fiscal 2017. Under the deal’s terms, Premier will purchase 100 percent of CECity’s outstanding stock for $400 million, funded by $250 million in cash and $150 million from borrowings under Premier’s untapped $750 million revolving credit facility.
Premier employs a total of approximately 1,700 people, and about 60 percent of them are based in Charlotte.