Bain Capital and Hellman & Friedman are leading an investor group to buy athenahealth, a health technology company, in a $ 17 billion trade, including debt.
The investor group includes GIC, Singapore’s Sovereign Wealth Fund, and the Abu Dhabi Investment Authority, said a statement. Veritas Capital and Evergreen Coast Capital, the sellers, retain minority stakes in Watertown, Massachusetts. The transaction is expected to be completed in the first quarter of 2022.
“Today marks an important milestone for athenahealth and our partnership with Veritas Capital and Evergreen Coast Capital, and we are excited to partner with Hellman & Friedman and Bain Capital to drive the next phase of our growth journey,” said Bob Segert, Chairman of the Board and CEO. of Athenian Health. He stays in the company with the management team.
Athenahealth provides enterprise cloud software to more than 140,000 healthcare providers in 50 states. The company targets providers of outpatient care, from small medical practices to large healthcare systems, a spokesman said. Its software helps providers manage their health records, handle billing, provide telecommunications health services. and let patients plan their own appointment, according to the company’s website.
Athenahealth was traded publicly until 2019, when it was sold to Veritas Capital, a private equity firm in New York, and Evergreen Coast Capital, the private equity entity of the activist hedge fund Elliot Management, for $ 5.7 billion. The companies merged athenahealth with Virence Health, an IT company in the healthcare sector.
In September, Bloomberg reported that athenahealth’s private equity owners explored options for athenahealth, including an IPO or a sale.
The Athenahealth sale is the latest major buyout this year. In June, three private equity firms –
(BX), Carlyle Group (CG) and Hellman & Friedman – agreed to buy Medline Industries, a medical supply and equipment company. The deal was valued at more than $ 30 billion, It informs the Wall Street Journal.
provided financial advice to athenahealth and Veritas Capital, while Milbank acted as their legal advisor. Nick Richitt from Deutsche Bank Securities,
Morgan Stanley, BMO Capital Markets, BofA Securities and JP Morgan, provided financial advice to Hellman & Friedman and Bain Capital. Matthew O’Brien and Chris Elder Kirkland & Ellis served as their attorneys.
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