Piper Jaffray Reports Allscripts CTO To Leave Company

According to Piper Jaffray, Allscripts (NASDAQ: MDRX) announced that John Gomez (CTO) will leave the company effective May 31st but will remain as a consultant for 18 months.

Piper Jaffray reported that it believes that John is the key executive to drive MDRX-ECLP technology/product integration and his departure further increases our integration concerns that are common with rollups. “The company also announced debt restructuring ($5m/yr interest savings) and a strategic outsourcing agreement ($3-$5m/yr savings), which could push estimates higher. While cost savings/synergies are great, we see John's departure concerning. Maintain Neutral, $22 target.”

Allscripts closed yesterday at $22.49.