Veritas Captial finalizes athenahealth acquisition for $5.7 billion
Veritas Capital and athenahealth closed the highly publicized $5.7 billion merger that also involves Evergreen Coast Capital and Virence.
As part of the transaction, Virence's Workforce Management business will become a separate Veritas portfolio company under the API Healthcare brand.
WHY IT MATTERS
Virence Chairman and CEO Bob Segert, along with an executive leadership team from athenahealth and Virence, will lead the company from the athenahealth campus in Watertown, Mass.
The transaction follows a merger announcement last November, which was approved by athenahealth shareholders Feb. 7, according to the company statement.
As a result of the completion of the transaction, shares of athenahealth common stock will be removed from listing on Nasdaq, with trading in athenahealth shares to be suspended following the closing of business on Feb. 11.
Athenahealth is a provider of medical record, revenue cycle, patient engagement, care coordination, and population health services — with a network of more than 120,000 providers and approximately 117 million patients. Virence Health sells its own health IT products and was formerly part of GE Healthcare.
THE LARGER TREND
The merger follows last June’s departure of athenahealth’s founder and CEO Jonathan Bush, who left in the midst of sexual harassment allegations and following the release of a video with lewd comments at a 2017 healthcare industry event and domestic abuse in 2006 during a divorce.
The company has been surrounded by merger talk and takeover propositions over the past year. Athenahealth received multiple bids for purchase, reportedly at $131 per share — or below a previous cash bid for the healthcare software firm — in an unsolicited move by Paul Singer’s Elliott Management.
ON THE RECORD
“athenahealth is one of the most unique and valuable assets in healthcare – with industry-leading solutions and a vision and model for delivering financial and clinical results for providers,” said Bob Segert, chairman and CEO of the newly combined company. “By combining our companies’ cultures, solutions and teams, we have an opportunity to accelerate that vision, achieving a scale that will allow us to unlock new value for all of our customers.”
Diana Manos is a Washington, D.C.-area freelance writer specializing in healthcare, wellness and technology.