Investment firms seeking health IT deals

Over the past month or so, private investment firms have begun to sink money into health IT companies. Not only that, the firms are willing to pay "reasonable" prices rather than rock-bottom, last-offer pitches, suggesting they see HIT as a health industry poised for growth, says Stephen Lieber, HIMSS president and CEO.

One example is the recent sale of revenue management systems provider Lynx Medical Systems of Bellevue, Wash., which was scooped up by Picis. Lynx was sold by private equity firm Francisco Partners of Menlo Park, Calif. Weeks before the Lynx deal, however, Francisco picked up Dairyland Healthcare Solutions of Glennwood, Minn. Another comes from Misys, which was able to sell its diagnostic business, as planned, to private equity firm Vista Equity partners for $381 million. Yet a third example comes with the acquisition of a 58 percent stake in Hyland Software by Thomas Cressey Bravo.

To get background on the dynamics of the deals:
- read this Modern Healthcare article

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