Wednesday, March 22, 2023
HomeHealthcareAthenahealth changes hands again with a $17B transaction

Athenahealth changes hands again with a $17B transaction

Less than three years after being acquired by private equity investors, athenahealth will soon change hands again. Its current owners Veritas Capital and Evergreen Coast Capital reached an agreement to sell it to Bain Capital and Hellman & Friedman for $17 billion. The transaction will be financed through a mix of equity and debt.

In September, Bloomberg News Veritas and Evergreen have begun to explore various options, hoping to obtain a valuation of US$20 billion for the company. After the transaction is completed, both companies will hold minority stakes.

Athenahealth of Watertown, Massachusetts primarily caters to outpatient care providers through its cloud-based EHR system. It claims to have more than 140,000 suppliers as customers.

Compared with Veritas and Elliott Management subsidiary Evergreen when it first purchased it for $5.7 billion in 2019, athenahealth is priced at $17 billion. Actively promote company sales In the past year, I hope to privatize it and change the way it operates.When the company faced a takeover offer, the then CEO and founder Jonathan Bush steps down With the exposure of allegations of sexual harassment.

After the transaction is finally completed, athenahealth has been kept private. Merged with Virence Health, a health IT company, This is a spin-off from GE Healthcare.

“During our successful collaboration with Bob and the management team, athenahealth has driven tremendous growth and transformation, and consolidated its position as the premier healthcare IT company supporting the largest national healthcare provider network,” Veritas Capital Chief Executive Officer Official and managing partner Ramzi Musallam said in a press release. “After we were privatized and merged with Virence in 2019, athenahealth provided customers with unparalleled value through a significant increase in R&D investment, thereby improving the quality of medical care, reducing the cost of the entire healthcare ecosystem, and improving the overall health of patients. treatment effect.”

The current leadership of Athenahealth, including CEO Bob Segert, will continue to run the company after the merger. The transaction is expected to be completed in the first quarter of next year.

Photo credit: Natee Meepian, Getty Images

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