Computer Programs and Systems (CPSI) announced it has entered into a definitive agreement to acquire Healthland Holding and its affiliates, Healthland, American HealthTech and Rycan Technologies.

CPSI said the contemplated total aggregate consideration to be paid is $250 million, payable approximately 65% in cash and 35% in CPSI common stock. The completion of the transaction is subject to review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the satisfaction of other customary closing conditions, and is targeted to close in 2015.

To finance the transaction, CPSI will use cash available on its balance sheet, $150 million of funded debt from a new senior secured credit facility and shares of its common stock. CPSI and Regions Bank have executed a committed financing letter for the new senior secured credit facility that CPSI intends to enter into at the time of closing the transaction.

CPSI’s financial advisor in this transaction was Allen & Company. Maynard, Cooper & Gale and Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel to CPSI. Shearman & Sterling served as legal counsel to Healthland.

Mobile, AL-based CPSI is a provider of healthcare information solutions to rural and community hospitals. Healthland provides electronic health records (EHR) and clinical information management solutions to over 350 hospital customers. American HealthTech is a provider of clinical and financial solutions in the post-acute care space, serving over 3,300 skilled nursing facilities. Rycan offers SaaS-based revenue cycle management workflow and automation software to over 290 hospital customers.