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Toronto’s Constellation Software Inc. CSU-T says a subsidiary will spend US$700-million in cash and stock to buy a suite of medical-records software from Chicago-based Allscripts Healthcare Solutions Inc.

The acquisition includes Allscripts’ business segments that focus on hospitals and larger physician practices, including software for record-keeping, billing, workflow improvement and regulatory compliance.

The purchase is being made by Constellation subsidiary N. Harris Computer Corp., an acquisitions-focused company that buys software serving public-sector, health care, utility and other organizations. Harris and its portfolio businesses employ more than 6,000 people, and it already has more than 20 health care software companies in its holdings.

Constellation is one of Canada’s most valuable technology companies, with a market capitalization of more than $45-billion. Chief executive officer Mark Leonard said in a shareholder letter last year that the company was interested in making larger acquisitions with its excess cash.

The companies said late Thursday that Constellation would pay for the acquisition with US$670-million in cash upon closing and an additional $30-million consideration based on the new division’s performance over two years. They expect the transaction to close in the second quarter.

Constellation spent US$1.2-billion in cash on acquisitions in 2021, though the company said in its most recent financial statements that the majority of its purchases were company shares and assets. But it did report buying software companies in a number of markets, including insurance, health care, mining and financial services.

The company said last month that it brought in US$1.38-billion in revenue in its most recent quarter, which ended in December. It reported a profit of US$145-million, or US$5.86 per share.

Harris is one of six business lines within Constellation, which the company says “operate essentially as mini Constellations, conglomerates of small vertical market software companies with similar economic characteristics.”

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