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2 non-public fairness companies close to $17B deal to amass Athenahealth: WSJ report

Two non-public fairness companies are near a deal to amass Athenahealth for $17 billion, together with debt, in accordance with The Wall Avenue Journal.

Personal fairness companies Bain Capital and Hellman & Friedman LLC are nearing a deal to amass Athenahealth Inc. for about $17 billion together with debt, in accordance with individuals acquainted with the matter, the WSJ’s Cara Lombardo and Miriam Gottfried reported Friday.

A deal for the well being tech firm may very well be accomplished within the coming days, Lombardo and Gottfried report, citing individuals with information of the matter. The non-public fairness pair is poised to prevail in an public sale of the Watertown, Massachusetts-based firm, although there isn’t any assure they may clinch a deal, in accordance with the WSJ.

Bloomberg reported in September that Athenahealth’s non-public fairness homeowners, Veritas Capital and Elliott Funding Administration, have been exploring choices for the well being tech firm together with a sale or an preliminary public providing.

The digital well being report and observe administration software program vendor went non-public again in February 2019 after Veritas Capital and Evergreen Coast Capital, a subsidiary of Elliott Administration, acquired the corporate for $5.7 billion. As a part of that deal, Athenahealth was mixed with Virence Well being, the previous GE Healthcare value-based care asset Veritas acquired in 2018.

RELATED: Veritas Capital closes acquisition of Athenahealth, says mixed firm can have ‘transformational influence’

Paul Singer-owned activist hedge fund Elliott started publicly pressuring the corporate in Might 2018 to think about a takeover provide valued at $160 a share, or about $7 billion, arguing the corporate was undervalued.

That kicked off a tumultuous a number of months during which founder and longtime CEO Jonathan Bush was pressured to resign, and the corporate started contemplating exterior presents below the course of chairman and former GE CEO Jeff Immelt. UnitedHealth and Cerner have been reportedly amongst those who submitted preliminary bids. At one level, healthcare funds firm nThrive was speculated to swoop in as the corporate’s white knight.

The potential sale or IPO for Athenahealth comes as funding and merger and acquisition exercise within the well being tech sector are booming and multiples are ballooning.

RELATED: Athenahealth homeowners Veritas Capital, Elliott Administration exploring sale or IPO: report

Notable transactions embody the anticipated merger of well being information firm Datavant and well being IT agency Ciox Well being for an estimated $7 billion together with Accolade’s acquisition of PlushCare, a digital main care and psychological well being therapy firm, for $400 million.

Different main offers to trace embody Nordic Capital and Perception Companions’ $6.4 billion buy of Inovalon Holdings Inc. and UnitedHealth Group’s plan to buy Change Healthcare for about $13 billion.

Hellman & Friedman has workplaces in San Francisco, New York and London and has greater than $80 billion in belongings below administration and dedicated capital.

Bain, which is predicated in Boston, manages about $150 billion in belongings throughout non-public fairness credit score, public fairness, enterprise capital and actual property.

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