Shares of Allscripts Health Solutions (NASDAQ:MDRX) plunged about 16% in Thursday morning trading after the company announced that it had fired its CEO and is no longer seeking a buyer.
In regulatory filings, Allscripts said Glen Tullman, who had served as chief executive since the company’s IPO in 1999, had been replaced by Paul Black, a former Cerner (NASDAQ:CERN) executive, Bloomberg noted.
Along with its CEO, Allscripts also fired President Lee Shapiro, who’ll continue as a consultant on a temporary basis.
In a statement, the company said its board had decided against selling and had opted instead to install a new management team. Allscripts had experienced difficulty after its 2010 acquisition of Eclipsys failed to produce the intended boost to its hospital technology sales.
Allscripts had received acquisition offers from several private equity firms, including Carlyle Group (NYSE:CG) and Blackstone Group (NYSE:BX), after losing a major hospital contract and facing a shareholder lawsuit earlier this year. It had retained Citigroup (NYSE:C) to guide it through a potential sale.