Lehman Brothers financial woes delay Allscripts, Misys deal

Misys and Allscripts are shopping for a new investor due to Lehman troubles. Image Source: Bloomberg

Allscripts and Misys have rescheduled stockholder and general meetings from Sept. 22 to Oct. 6, as Misys is seeking new sources of funding to close the merger in light of recent financial events involving Lehman Brothers. 

In connection with the proposed transactions contemplated by an agreement and plan of merger on March 17, by and among Allscripts, Misys, Misys Healthcare Systems and Patriot Merger, Lehman Brothers had committed to a $305 million term and revolving credit facility agreement to fund a portion of the $330 million payment by Misys to Allscripts. Lehman has since filed for bankruptcy protection.

The London-based Misys said that it has been unable to confirm whether Lehman Brothers will be able to fulfill its role under this facility and has therefore commenced the process of identifying other funding alternatives and is in discussions with several other debt providers. The consummation of the transactions contemplated by the agreement is not subject to a financing condition.

"While the events surrounding Lehman Brothers are unfortunate, we nevertheless remain excited about the transactions with Misys and believe they are in the best interests of our stockholders and clients,” added Glen Tullman, CEO of the Chicago-based Allscripts.