The credit rating agency said it expects a material increase in debt to fund the $17 billion transaction and would look to resolve the rating watch negative after the deal’s financing terms close, according to a Nov. 29 news release.
Athenahealth on Nov. 22 announced its agreement to be jointly acquired by Hellman & Friedman and Bain Capital. Private equity firms Veritas Capital and Elliott Investment Management bought Athenahealth in February 2019 for $5.7 billion.
While the financing terms of Athenahealth’s current acquisition agreement were not disclosed, Fitch said it estimates that a typical leveraged buyout in this situation would result in an increase of borrowed capital.
