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Update on sale of majority interest in Allscripts

Transaction progressing ahead of timetable
Reduced minimum placing size
ValueAct Capital to submit an order for shares in the placing

On 9 June 2010, Misys plc (LSE:MSY) announced its intention to sell the majority of its 54.6% interest in its Allscripts subsidiary (NASDAQ:MDRX), to return substantially all the proceeds of the sale to Misys’ shareholders and that Allscripts had agreed to merge with Eclipsys Corp (NASDAQ:ECLP). Misys also announced that part of the sale consisted of a placing of Allscripts shares.

Misys has now agreed with Allscripts and Eclipsys that the minimum size of the placing will be reduced from 36 million shares to 25 million shares. All other terms of the transactions are unchanged. Misys continues to believe that the combination of Allscripts and Eclipsys represents a significant strategic opportunity for these two companies and their respective shareholders, which the Misys Board believes is not properly reflected in the current share price of Allscripts. Misys wishes to sell fewer Allscripts shares in the placing at prevailing prices and is now in the position to do so. The proceeds of the sale available for return to Misys shareholders following successful completion of the transactions are expected to be approximately US$1 billion.

These transactions remain subject to shareholder approval. The reduction of the minimum placing size will take effect automatically as soon as the Allscripts and Eclipsys shareholders have approved the merger. Allscripts and Eclipsys have previously announced that they have been able to accelerate their respective timetables and have scheduled their shareholder meetings on 13 August. Misys continues to make good progress with its own regulatory filing process and expects to be able to post its circular to shareholders later this week and to hold its shareholder meeting in mid-August, ahead of the timetable set out in the announcement of 9 June.

Misys has been informed by ValueAct Capital, its 25.7% shareholder, that ValueAct intends to participate as a purchaser in the placing of Allscripts shares. Specifically, ValueAct has informed Misys in writing that it intends to submit an order to the bookrunners for 5 million Allscripts shares at a price of US$16.50. At prices above US$16.50, ValueAct may adjust the number of shares it purchases.

Finally, Misys is pleased to report that the waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act of 1976 for the merger of Allscripts and Eclipsys expired at midnight on 26 July.

ENDS