Worcestershire software company Misys has said it intends merging its healthcare arm with Nasdaq-listed clinical software firm Allscripts.
The Evesham-based firm said it would raise £75 million in a share placing to help the transaction, under which it will pay £165 million for a controlling 54.5 per cent stake in the combined entity.
Chief executive Mike Lawrie said: "Misys healthcare has struggled in the last couple of years, but this is all about taking a very powerful footprint in the US. Misys will become a growth company again."
He said the deal was a key stage of the company's turnaround, launched a year ago. The news lifted shares 19.5p to 161.25p.
Mr Lawrie said the combined group - to be called Allscripts-Misys and listed on the Nasdaq - would be earnings accretive in the short term and grow at high single-digits in the first year.
The intention is that this will raise growth levels to between seven and nine per cent in 2008/09, he added.
Allscripts-Misys will target the US ambulatory market - patients being treated outside hospitals - and it will immediately have one in three US physicians as clients.
"The healthcare market in the US is growing at more than twice Gross National Product and is more immune to the ups and downs in the economic cycle," said Mr Lawrie, who is set to become executive chairman of the new company.
Current Allscripts chief executive Glen Tullman will take the same post - the business will be valued at around £500 million.
Separately yesterday, Misys said its third-quarter operating profit had risen 166 per cent to £15 million and it had upgraded sales growth forecasts for the current year to between two to four per cent - a likely total of £479-488 million - from its January forecast of two to three per cent.
Despite the current economic climate Mr Lawrie said the firm was not experiencing any slowdown in demand.
"To date we have not seen any changes to demand for our products and we believe this is confirmed by our order intake," said a group statement.
In January, it signed two significant new deals as part of its partnership strategy - one with China's biggest financial information technology service provider, Digital China Financial Software, and a second with Symphony Services, a global leader in product engineering services.
The Chinese deal is to deliver a new, hosted, banking solution targeted at the 30,000 small and medium-sized banks in China.