Athenahealth sold to Veritas Capital for $5.7 billion

Maricruz Casares
Noviembre 14, 2018

Daniel Becerril/ReutersJeff Immelt, now the chairman of Athenahealth, delivers a speech.

Private equity firm Veritas Capital and Evergreen Coast Capital, an affiliate of hedge fund Elliott Management, have agreed to buy athenahealth for an estimated $5.7 billion in cash, ending a monthslong question over whether the Watertown, Mass. -based healthcare software vendor would remain independent or be acquired.

The Watertown, Massachusetts-based company, whose cloud-based software is used to track revenue from patients, physicians and hospitals, has cut jobs and overhauled its management over the past year as part of a restructuring effort.

Jeff Immelt, former GE CEO and executive chairman of Athena, expects private ownership will benefit his Watertown (MA)-based company via "increased flexibility to achieve our goal of unleashing our collective potential to transform healthcare".

More news: Aung San Suu Kyi, despojada de la máxima distinción de Amnistía Internacional

Veritas Capital and Evergreen Coast Capital said Monday they'll pair athenahealth with a company Veritas bought earlier this year, Virence Health.

The acquisition values Athenahealth at $135 per share, according to a statement on Monday.

A month after Elliott made its offer, co-founder and CEO Jonathan Bush said he was stepping down. He stepped down after issuing an apology following a newspaper report alleging he had assaulted his former wife 14 years earlier. Virence CEO Bob Segert will lead the new company. On Friday, it reported third-quarter earnings that topped analyst expectations, but its revenue fell short of the average forecast on Wall Street. The companies expect to close the transaction in the first quarter of 2019, subject to approval from shareholders and the satisfaction of customary closing conditions and regulatory approvals.

Otros informes por

Discuta este artículo

SIGUE NUESTRO PERIÓDICO