Allscripts closed its acquisition of McKesson’s Enterprise Information Solutions business Oct. 2.

Allscripts purchased the hospital and health system IT business for $185 million in cash, “subject to an adjustment for net working capital and net debt,” according to an Allscripts statement.

Under the agreement, Allscripts will invest in and offer McKesson’s Paragon EHR as an integrated EHR and revenue cycle management solution for the small hospital market segment. The company will continue to promote the Allscripts Sunrise EHR as its primary platform for larger institutions.

The transaction expands Allscripts’ client base, doubling its current EHR client count among hospitals and health systems in the U.S. McKesson’s Enterprise Information Solutions clients will also have access to Allscripts’ population health management, revenue cycle management and precision medicine solutions.

The closing follows Allscripts’ initial announcement of its intent to acquire McKesson’s health IT business Aug. 3. The acquisition will advance Allscripts’ focus on health IT while strengthening McKesson’s position as a leader in supply chain management solutions, the companies said in August.