Health IT supplier Allscripts has announced it has reached an agreement to sell part of its business to Harris Computer Corporation for around £526million ($700million).

The deal involves Allscripts’ hospitals and large physician practices which includes the Sunrise, Paragon, Allscripts TouchWorks, Allscripts Opal, STAR, HealthQuest and dbMotion solutions.

In statement, Allscripts added that its Veradigm business segment are not included in the deal and will continue to be owned by them.

Paul Black, CEO at Allscripts, said: “The medical industry we faithfully serve has gone through tremendous change and the needs of the customers in our different business segments continue to evolve in different ways. We think this transaction maximizes focus as well as future opportunity for our clients, our more than 7,500 associates and our shareholders.

“Harris has demonstrated excellence in software development, customer satisfaction and worldwide growth in healthcare. We are pleased that our solutions will be a key strategic component of Harris’ plans to become leaders in digital health. As the cornerstone of the Harris portfolio, we are proud that our customers will continue to benefit from a true platform of health.”

The £526million ($700million) deal consists of a fixed price of £503million ($670million) being paid once the deal is closed, plus a contingent consideration of up to £22.5million ($30million), which will be based on the performance of the business during the two years following the deal closing.

The deal is subject to regulatory approval and customary closing conditions, and is expected to close during the second quarter.

Harris CEO, Jeff Bender, added: “We have been watching and admiring the hospitals and large physician practices franchise for many years.

“We believe that we are the perfect forever home for the many talented employees and loyal customers that are the backbone of the franchise. We are excited to begin the next chapter in our Harris story, continuing to serve those who serve us in the communities where we live, by partnering with healthcare professionals to deliver care that improves lives.”

The news follows Oracle acquiring electronic health record (EHR) provider, Cerner, in a deal worth around £22.4billion ($28.3billion), towards the end of 2021.

A report in the Financial Times said that a deal would help cement Oracle in the fast growing health IT sector as Cerner is one of the largest provider of hospital electronic medical systems to the US healthcare market and a leading supplier to the NHS.