WATERTOWN, Mass.–(BUSINESS WIRE)–Jan. 7, 2013– athenahealth, Inc. (NASDAQ: ATHN), a leading provider of cloud-based electronic health record ( EHR ), practice management, and care coordination services to medical groups and health systems, today announced that it has signed a definitive agreement to acquire Epocrates, Inc. a mobile health pioneer widely recognized for developing the most-widely adopted point-of-care medical application among U.S. physicians.
The board of directors of each of athenahealth and Epocrates has agreed to a price of $11.75 per share, in cash, for an aggregate purchase price of approximately $293 million. The purchase price represents a 22 percent premium over the closing price per share of Epocrates on NASDAQ on Friday, January 4, 2013. This is an all-cash offer for all outstanding shares of Epocrates’ common stock, and athenahealth intends to finance this acquisition using available cash and funds available from its existing credit facility. The closing of the transaction is subject to the approval of Epocrates shareholders and other customary closing conditions and is currently expected to occur early in the second quarter of 2013. Epocrates shareholders representing approximately 17.5% of the outstanding common stock have agreed to vote their shares in favor of the transaction.
According to Epocrates , “this acquisition merges Epocrates’ mobile expertise with athenahealth’s Best in KLAS cloud-based services to reimagine and redefine mobile workflows and information access at the point of care”.
With the pervasiveness of mobile internet, I think the concept of keeping large amounts of data on your mobile device which needs to be constantly synced and updated is less attractive than a good mobile app which keeps only core data and relies on data stored “in the cloud”. Epocrates badly needs to redesign it’s mobile web app which to me is looking rather dated, and I hope that will be one of the things at the top of their list of things to do.