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Allscripts Names Paul Black CEO; Strategic Evaluation Ends

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Healthcare information service company Allscripts Healthcare Solutions Inc. (MDRX: Quote), Wednesday appointed board member Paul Black as its President and Chief Executive Officer, effective immediately. The Chicago, Illinois-based company also said it has formally concluded its evaluation of strategic alternatives.

Following the news, shares of the company plunged 15 percent in after-hours trade.

Black replaces Glen Tullman, who will also step down from the board. Lee Shapiro will step down as President immediately, and will serve as a consultant to Black for up to six months, the company said in a statement.

Last month, Allscripts had confirmed evaluating strategic alternatives following takeover interest from third parties, reportedly from private equity firms such as Blackstone Group LP (BX), Carlyle Group LP (CG) and Silver Lake Management LLC.

Nevertheless, commenting on the strategic alternatives process, Chairman Dennis Chookaszian said, "The Board conducted a thorough and rigorous review of strategic alternatives. The Board concluded, however, that the best course at this time is to develop Allscripts' long-term potential under the direction of our new management team."

Commenting on the appointment, Chookaszian said, "Paul possesses a unique blend of operational, healthcare and IT sector expertise, and we are pleased that he has agreed to lead the Company at this critical juncture."

MDRX closed Wednesday's trading at $10.68, down $0.06 or 0.56%, on the Nasdaq. In after hours trade, the stock lost $1.62 or 15.17%.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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Editors Pick
After moving sharply lower in early trading on Wednesday, stocks have seen continued weakness over the course of the trading session. Will the pullback, the major averages are adding to the modest losses posted in the two previous sessions. With spending on private and public construction both showing notable decreases, the Commerce Department released a report on Wednesday showing an unexpected drop in U.S. construction spending in the month of August. Growth in U.S. manufacturing activity saw a notable slowdown in the month of September, according to a report released by the Institute for Supply Management on Wednesday, with the index of activity in the sector pulling back off a three-year high.
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