Practice Fusion, a start-up from the crowded electronic medical records market, was acquired on Monday for $100 million, two years after bankers were expecting to take the company public at a $1.5 billion valuation.
Allscripts announced the cash deal in a press Discharge along with also said the cost is usually “subject to adjustment for working capital along with also net debt.”
Fueled by funding by powerful venture capital firms like Peter Thiel’s Founders Fund along with also Kleiner Perkins Caufield & Byers, Practice Fusion raised more than $157 million on the promise of developing medical records software in which smaller practices could use for free. however the market has continued to consolidate from the hands of giant vendors like Epic Systems along with also Cerner, leaving little business for start-ups.
“Oh my goodness, how disappointing,” said Bob Kocher, a health along with also technology investor at Venture firm Venrock, which did not invest in Practice Fusion. “A company with so much promise has fallen so far.”
Practice Fusion last raised a big venture round in 2013 at a $700 million valuation. In January 2016, The fresh York Times reported in which the company had hired JPMorgan to explore an IPO in which could value Practice Fusion at $1.5 billion, on the basis in which the idea could reach $181 million in revenue by 2018.