Internally, a very different story was unfolding. After several years of missed targets as well as a management shake-up that will resulted inside the ouster of founder as well as CEO Ryan Howard, the board was quietly looking for a way out.
Confidential documents obtained by CNBC reveal that will the board had started off seeking a potential buyer in November 2015, several months before the Times report, as well as had hired Evercore to help the item solicit interest. As many as 40 potential buyers were contacted, with bids ranging by $50 million to $225 million — a fraction of its desired IPO valuation.
Financial statements show that will the company was well shy of the financial metrics reported by the Times as well as that will the business was starting to decline. Following a revenue jump of 70 percent in 2015 (the final year of Howard’s tenure), growth slowed to 13 percent in 2016, closing the year at about $54 million. Through the first nine months of 2017, sales declined 10 percent by the same period inside the previous year — by $37 million to $34 million.
Practice Fusion was also downsizing. The company eliminated one-quarter of its workforce — 74 people — in February 2016. however Beth Seidenerg, a director as well as Kleiner Perkins partner, told TechCrunch that will there was no cause for alarm. CEO Tom Langan described the move as necessary to get the company to a profit, at the same time that will low-priced acquisition offers were starting to accumulate.
At its peak under Howard, the company employed more than 400 people. the item’s today down to about 0 employees, sources said.
The highest offer Practice Fusion received came in May 2017 by its eventual buyer, AllScripts, which was proposing $225 million to $250 million, according to the confidential documents. that will deal fell apart after the news broke that will a company inside the same space, eClinicalWorks, had misled customers about the certification of its health the item software, resulting in a $155 million settlement as well as a $1 billion class-action lawsuit.