Private equity firm Veritas Capital and Elliott Management-affiliate Evergreen Coast Capital completed their acquisition of athenahealth Feb. 11 for approximately $5.7 billion in cash.
As a result of the sale's completion, shares of athenahealth common stock will be removed from listing on Nasdaq, and trading in athenahealth shares will be suspended.
Veritas plans to combine athenahealth with Virence Health, a value-based care business that Veritas acquired from GE Healthcare in 2018. The combined company will keep the athenahealth name, brand and Watertown, Mass.-based headquarters, and will be led by Virence Chairman and CEO Bob Segert. Its executive leadership team will be composed of executives from both companies.
"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," Mr. Segert said in a news release. "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. Today marks the first step in our new journey as a united team, and we are more committed than ever to investing in innovation, delivering a superior customer experience, and continuing our collective mission to transform healthcare."
The sale's closing marks the end of a monthslong question over whether athenahealth would remain independent or be acquired, which began in May 2018, after activist investment firm Elliott Management issued an unsolicited takeover bid to buy the company.
Athenahealth shareholders approved the sale Feb. 7.