Quality Systems announced it will acquire San Diego-based HealthFusion, a cloud-based software provider for physicians, hospitals and medical billing services for $165 million plus potential additional contingent consideration of up to $25 million.

The company said it has secured $200 million in fully committed financing from J.P. Morgan and U.S. Bank. At closing of the transaction, the company expects to fund approximately $115 million of the consideration via this credit facility and the remainder through excess cash on hand.

The transaction is subject to customary closing conditions and is expected to be completed during the company’s current fiscal year, which ends March 31, 2016.

Founded in 1998 by three entrepreneurs including two primary care physicians, San Diego, CA-based HealthFusion supports over 6,000 ambulatory subscribers in more than 30 specialties spread across all 50 states and employs 140.