Athenahealth Acquired By Veritas Capital For .7 billion

The investment firm Veritas Capital finalized athenahealth EMR Software acquisition for $5.7 Billion. The firm says that it will merge athenahealth with Virence. The highly anticipated deal involving Virence and Evergreen Coast Capital was finalized recently. The Workflow Management business of Virence will become a separate Veritas portfolio company under healthcare brand as a part of the deal.

Bob Segert, CEO and Chairman of Virence will head the company from Athena’s campus in Watertown, along with the executive leadership of athenahealth. According to the company’s statement, the transaction deal will follow a merger announcement, which was approved by athenahealth shareholders on 7^th February.

Once the transaction is made, common stock shares of athenahealth will be removed from Nasdaq and trading in athenahealth share will be suspended after the closure of business on 11^th February. Athenahealth EHR provides Electronic Medical Records (EMR) Software, Practice Management (PM) Software, Revenue Cycle Management, and Population Health Services etc. to more than 120,000 healthcare providers and almost 117 million patients. On the other hand, Virence Health itself sells healthcare products and was previously a part of General Electric (GE) Healthcare.

The acquiring follows the resignation of Jonathan Bush, CEO and Founder of athenahealth in last June. Bush left because of the sexual harassment allegations, the release of a questionable video with lewd comments at a healthcare industry event in 2017, and because of domestic abuse allegations during a divorce in 2006.

Since then, there have been many talks about the acquisition and merger propositions. The company received many purchase bids, even at $131/share, and another cash bid by Elliott Management.

Bob Segert, CEO and the Chairman of the newly acquired company said, “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. 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.”