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Athenahealth is about to be sold for 17 billion dollars

Healthcare technology company Athenahealth It’s nearly sold to private equity firms Bain Capital and Hellman & Friedman, according to people familiar with the situation, in a $17 billion deal that will bring the curtain down on an acquisition to be created. from one of the toughest active campaigns in recent memory.

Private equity firm Veritas Capital and hedge fund Elliott Management get private Athenahealth Four years ago, months after former CEO Jonathan Bush resigned following revelations about his personal life.

At the time, Elliott was fighting a public campaign to get rid of Bush, who is related to two former US presidents, thinks he mismanaged the company. The activist hedge fund participated in the acquisition of Veritas through private equity fund Evergreen Coast Capital.

Potential deal with Bain Capital and previous H&F report of The Wall Street Journal. People familiar with the situation said the negotiations were at a fluid stage and there was no guarantee that a transaction would proceed.

The transaction will be the latest in a large number health care-centralized acquisitions, and one where private equity firms have teamed up to buy businesses worth $10 billion or more – too big even for most Large group to deal with alone.

Just as recently in June, H&F partnered with its rivals Blackstone and Carlyle to reach an agreement to acquire family-owned health products supplier Medline for a 34-year leveraged buyout. billion dollars.

For Veritas and Elliott, the potential acquisition would mark the culmination of a sustained effort to extract more financial value from Athenahealth, in part by taking on debt to the once prudently funded company.

It will also whitewash a complicated part of corporate empire-building that began in 2018 when Veritas, run by billionaire Ramzi Musallam, acquired a unit of GE Healthcare focused on payments and software other medical software for about $1.1 billion.

Within months, Veritas and Evergreen Coast Capital announced plans to buy Athenahealth for $5.7 billion and merge it with GE’s former business, which has since been renamed Virence Health.

Since then, Athenahealth has saved $180 million in cost-cutting while continuing to grow revenue, according to Moody’s – generating additional profits that reduce some debt that the expansion company did.

Representatives for H&F and Bain Capital declined to comment.

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