Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — Merger or Acquisition (March 2008)
36 slides from Veradigm's merger presentation, Mar 18, 2008
Slide 1: Creating a Clear Leader in Physician Solutions
Creating a Clear Leader in Physician Solutions Presentation to Analysts March 18, 2008 EXHIBIT 99.6
Slide 2: Forward Looking Statements
Forward Looking Statements This communication contains forward-looking statements. Those forward-looking statements include all statements other than those made solely with respect to historical fact. Forward-looking statements may be identified by words such as “believes”, “expects”, “anticipates”,
Slide 3: Additional Information and Where to Find It
Additional Information and Where to Find It This communication is being made in respect of the proposed business combination involving Allscripts, Inc. (“Allscripts”) and Misys Healthcare Systems LLC (“MHS”), a wholly owned subsidiary of Misys plc (“Misys”). In connection with this proposed transact
Slide 4: Agenda
Agenda Jim Malone, CFO of Misys plc Misys Financials Bill Davis, CFO of Allscripts CFO designate of Allscripts-Misys Synergies and Allscripts-Misys Financials Glen Tullman, CEO of Allscripts CEO designate of Allscripts-Misys Allscripts-Misys: A Clear Leader Mike Lawrie, CEO of Misys plc Executive Ch
Slide 5: About Misys
5 About Misys • 4,500 Employees Serving 120 Countries • £470m ($902m) in Revenue (Fiscal 2007) – Misys plc • LSE: MSY • Market Leader in Banking and Treasury and Capital markets worldwide with over 1,200 banks and financial institutions • Significant Market Presence in Healthcare – Practice Manageme
Slide 6: Transforming Misys: The Turnaround
Transforming Misys: The Turnaround • Restructured the business – Rebalanced portfolio and aligned the asset base to the strategy and higher growth market segments – Costs taken out to drive reinvestment and margin improvement • Focused on building a platform for growth – Building Global service busi
Slide 7: A Transformational Deal
A Transformational Deal • Misys and Allscripts will each combine their respective healthcare businesses into Allscripts-Misys • Misys will also transfer £165m ($330m) in cash to Allscripts- Misys resulting in a 54.5% ownership interest (on a fully diluted basis) for Misys in Allscripts-Misys • Allsc
Slide 8: A clear leader in clinical software, information and connectivity solutions
A clear leader in clinical software, information and connectivity solutions A Clear Leader in Physician IT Solutions • “The perfect match in the perfect market”: Top rated EHR + market share leader for PM in the growing small/mid-sized physician group market • Highly rated, innovative products in ev
Slide 9: Positioned to capitalize on the transformation of U.S. Healthcare
Allscripts-Misys will be positioned to capitalize on the transformation of U.S. Healthcare Positioned to Capture the Healthcare Opportunity • Convergence of healthcare and technology in U.S. • Allscripts-Misys positioned to monetize $5 billion EHR market opportunity • Allscripts-Misys will: – Focus
Slide 10: Allscripts-Misys: A Clear Leader
Allscripts-Misys: A Clear Leader Glen Tullman, CEO of Allscripts CEO designate of Allscripts-Misys
Slide 11: A Vision…
11 A Vision… Every day in the U.S. approximately 150,000 physicians * will log on to a screen that says “Allscripts-Misys” * Allscripts and Misys Estimates
Slide 12: About Allscripts
12 About Allscripts • 1,150+ Employees • $280m in Revenue (2007) • Nasdaq: MDRX • 40,000+ Physicians and 700+ Hospitals • Established Leader in Healthcare IT Market – Electronic Health Records – Practice Management – e-Prescribing – Document Imaging – Personal Health Records – Connectivity Solutions
Slide 13: Why the Physician Market?
Why the Physician Market? Traditional View Healthcare Revolves Around the Hospital Our View Healthcare Revolves Around the Physician
Slide 14: Today's Physician IT Market – An Opportunity
Clinical / Electronic Health Records Core Practice Management Today’s Physician IT Market – An Opportunity • The Market… – Highly fragmented market with over 300 participants – Historically divided between core practice management and clinical vendors – Paradigm shift to complex clinical system driv
Slide 15: A Proven Approach…
A Proven Approach… Practice Management System Electronic Health Record Installed Base (2008) = 113,000 MDs Primarily in Small-Mid Sized Practices 2001: Allscripts Gained Exclusive Partnership to Market Allscripts EHR to IDX PM Base 2008: Allscripts Gains Exclusive Opportunity to Market Allscripts EH
Slide 16: Market Opportunity
Market Opportunity – ~ 500,000 U.S. Practicing Physicians – x 80% EHR Market Opportunity – x ~$12,000 Initial Investment/Physician – = ~$5 Billion Opportunity Electronic Health Record (EHR) Market = ~ $5 Billion Practice Management (PM) Market = ~ $1 Billion/Yr. ~10% to 20% of PM Systems Replaced/Yr
Slide 17: The Market Segments in Which We Compete
Allscripts Misys Allscripts- Misys The Market Segments in Which We Compete Large Practices/ AMCs/Hospitals 25< 200 MDs Mid-Sized Practices 10< 24 MDs Small Practices 1<10 MDs Key: Limited Presence Leader EHR Practice Mgmt. e-Prescribing Connectivity Solutions Source: Allscripts and Misys Assessment
Slide 18: The Largest Client Footprint in the U.S.
The Largest Client Footprint in the U.S. Misys 110,000 Physicians, 18,000 Medical Practices, 600 Homecare Agencies Allscripts
Slide 19: The Largest Client Footprint in the U.S.
The Largest Client Footprint in the U.S. Allscripts-Misys Approximately 150,000 Physicians and 700+ Hospitals Across the U.S.
Slide 20: Compelling Strategic Rationale
Leader in EHR and PM Highly Complementary Businesses Powerful Strategic Financial Rationale Compelling Strategic Rationale • Covers approximately 1 out of 3 of all physicians in America * • Brings together leaders in PM and EHR • Ability to network across healthcare from the emergency department to
Slide 21: Creates a Clear Leader: Allscripts-Misys
Creates a Clear Leader: Allscripts-Misys A clear leader in clinical software, information and connectivity solutions that empower physicians to deliver healthcare safely, efficiently and effectively +
Slide 22: Allscripts-Misys financials
Allscripts-Misys financials Bill Davis, CFO of Allscripts CFO designate of Allscripts-Misys
Slide 23: Transaction Summary
Company Name Expected Closing Allscripts Shareholders Receive Pro Forma Ownership Management Structure Transaction Summary Allscripts-Misys Healthcare Four to Six Months $330m Cash (approximately $4.90 per share) Retain their Shares in MDRX NASDAQ listing maintained Misys plc: 54.5% Allscripts: 45.5
Slide 24: Value Creation
Allscripts shareholders receive approximately $4.90 per share in cash and 45.5% ownership position in Allscripts-Misys Annual cost synergies $15-$20m expected in first year following transaction close Allscripts-Misys Long-Term Growth Profile Low double digit top line growth Better visibility and hi
Slide 25: Significant and Realizable Synergy Opportunity
0 5 10 15 20 25 30 Significant and Realizable Synergy Opportunity Cost synergies of $15m to $20m expected in first year following transaction close Up to $25m to $30m in annual cost savings within the next few years Main drivers of cost synergies include: Overhead, R&D, Marketing, Administrative Fun
Slide 26: Roadmap to Completion
Receive US antitrust clearance Complete the carve-out financial audits File the US proxy Distribute the shareholder circular for Misys plc shareholders Shareholder vote from both Misys plc and Allscripts shareholders Significant transaction costs will be recognized by Allscripts in Q1 Expected to cl
Slide 27: Misys Financials
Misys Financials Jim Malone, CFO of Misys plc
Slide 28: Transaction Overview
Transaction Overview • Misys and Allscripts will each combine their respective healthcare businesses into Allscripts-Misys which will be listed on NASDAQ • Misys will also transfer £165m ($330m) in cash to Allscripts-Misys resulting in a 54.5% ownership interest (on a fully diluted basis) for Misys
Slide 29: Misys is now a growth company
Misys is now a growth company Misys Financial Model Mid-point of End of Turnaround Turnaround FY 2009-10 FY 2011-12+ March 2007 – Strategy Presentation Group Revenue (growth) 2-4% 4-6+% Operating Margin, % 15-18% 18-20%+ March 2008 Group Revenue (growth) 7-9% 8-10% Operating Margin, % 18-20% 20-22%+
Slide 30: Debt Facilities and Equity Financing
Debt Facilities - $305M $150M Equity $150M Revolver $155M Term Debt Substantial Headroom Financing Equity financing at 175p • Full backstop equity commitment by ValueAct • If ValueAct is issued with this entire amount, its shareholding in Misys will increase from 19.4% to 25.8% • Market rates • Unse
Slide 31: Transformation into a Growth Company
Transformation into a Growth Company Dividends • Misys evolves to a growth company • Misys expects to pay its dividend for the year ended May 2008 in September • Future cash flows invested in business to fuel growth • Dividend policy to be kept under regular review
Slide 32: Misys Capital Structure
Misys Capital Structure Misys pre-transaction Nov 2007 Capital Structure £m • Shareholders equity • Cash and equivalents • Loans and overdrafts • Net (debt) / funds Misys post transaction – pro forma Nov 2007 Capital Structure £m • Shareholders equity • Cash and equivalents • Loans and overdrafts •
Slide 33: Governance
Governance Shareholder Rights • Allscripts-Misys continues as a NASDAQ listed company • Misys will enjoy anti-dilution rights that will allow Misys to maintain its majority control • Misys plc continues to be listed on the London Stock Exchange Board • Misys will nominate 6 of 10 directors on the Al
Slide 34: Current Trading and Conclusions
Current Trading and Conclusions Mike Lawrie, CEO of Misys plc Executive Chairman designate of Allscripts-Misys
Slide 35: Q3 Months to Feb '08
Q3 9 Months to 29 Feb ‘08 Misys Group financial performance (9 months ended 29 Feb 2008) £22M up 35% (2007: £16M) £70M up 5% (2007: £67M) ILF Revenue £54M up 29% (2007: £41M) £163M up 8% (2007: £150M) Total Order Intake £15M up 166% (2007: £6M) £51M up 52% (2007: £34M) Operating Profit £48M up 3% (2
Slide 36: @ ariscriers misys @
@ ariscriers misys @
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