McKesson, Change Healthcare to form new HIT company
McKesson Corp. and Change Healthcare Holdings on Tuesday announced the creation of a new healthcare information technology company that will combine almost all of Change Healthcare's business and most of McKesson Technology Solutions. The transaction is expected to close in the first half of next year.
Total annual revenues for the combined businesses were $3.4 billion as of March 31, the companies said.
The new entity, focused on healthcare technology and technology-enabled services, will be better positioned to respond to customer needs and deliver next-generation innovations, the companies maintain.
McKesson's RelayHealth Pharmacy and Enterprise Information Solutions division are not part of the deal and will be retained by McKesson. McKesson is exploring strategic alternatives for its EIS division.
Change Healthcare's pharmacy switch and prescription-routing business will not be part of the deal. They will be owned separately by the current Change Healthcare stockholders. Blackstone is the majority owner of Change Healthcare.
McKesson will own approximately 70% of the new company, with the remaining equity stake held by Change Healthcare stockholders, which includes Blackstone and Hellman & Friedman.
John H. Hammergren, McKesson's chairman and CEO, will serve as chairman of the combined entity. Neil de Crescenzo, president and CEO of Change Healthcare, will serve as CEO.