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Technology | TECHNOLOGY IN BRIEF

Neoforma.com Agrees to Buy Eclipsys in $4.2-Billion Deal

March 31, 2000|Bloomberg News

Neoforma.com, a medical supply e-commerce company, said it agreed to buy software maker Eclipsys Corp. and its affiliate Healthvision Inc., a closely held Internet health-care company, for about $4.2 billion. But Neoforma's shares plunged 35% on concern that the deal won't give the company the right tools to compete in the consolidating market for online sales of medical supplies. In Nasdaq trading, Neoforma shares plunged $10.50 to $19.88, cutting the value of the purchase to $2.7 billion. Shares in Delray Beach, Fla.-based Eclipsys fell $2.56, nearly 10%, to close at $23.25. Executives at Neoforma and Eclipsys said they're optimistic about the new company's outlook, however. The companies reached an exclusive 10-year agreement with Novation, the world's biggest buyer of medical goods, in exchange for a stake in the new company. Eclipsys shareholders will receive 1.344 shares of Neoforma for each of their shares, while closely held Healthvision owners will receive 0.444 share of Neoforma for each of theirs. Eclipsys also said it is dropping a hostile takeover attempt against Shared Medical Systems Corp.

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