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Veritas Capital and Elliott Management to Acquire Athenahealth for $5.7 billion

Evergreen Coast Capital to be Minority Investor in Combination of athenahealth and Veritas-Backed Virence

WATERTOWN, Mass., SEATTLE and NEW YORK, Nov. 12, 2018 /PRNewswire/ — athenahealth, Inc. (NASDAQ: ATHN), a leading provider of network-enabled services for hospital and ambulatory customers nationwide, Veritas Capital (“Veritas”) and Evergreen Coast Capital (“Evergreen”), today announced that they have entered into a definitive agreement under which an affiliate of Veritas and Evergreen will acquire athenahealth for approximately $5.7 billion in cash.

Under the terms of the agreement, athenahealth shareholders will receive $135 in cash per share. The per share purchase price represents a premium of approximately 12 percent over the company’s closing stock price on November 9, 2018, the last trading day prior to today’s announcement, and a premium of approximately 27 percent over the company’s closing stock price on May 17, 2017, the day prior to Elliott Management Corporation’s announcement that it had acquired an approximate 9 percent interest in the company.

Following the closing, Veritas and Evergreen expect to combine athenahealth with Virence Health (“Virence”), the GE Healthcare Value-based Care assets that Veritas acquired earlier this year. The combined business is expected to be a leading, privately-held healthcare information technology company with an extensive national provider network of customers and world-class products and solutions to help them thrive in an increasingly complex environment.

Following the close of that transaction, the combined company is expected to operate under the athenahealth brand and be headquartered in Watertown, Massachusetts. The company will be led by Virence Chairman and Chief Executive Officer Bob Segert and an executive leadership team comprised of executives from both companies. Following the completion of the transaction, Virence’s Workforce Management business will become a separate Veritas portfolio company under the API Healthcare brand.

“After a thorough strategic review process, we have decided to enter this agreement with Veritas, which we believe maximizes value for our shareholders and accelerates our goal to transform healthcare,” said Jeff Immelt, Executive Chairman of athenahealth. “Combining with Virence will create new opportunities for collaboration and growth. Operating as a private company with Veritas’s ownership and support will provide athenahealth with increased flexibility to achieve our purpose of unleashing our collective potential to transform healthcare.”

“athenahealth is a market leader and a natural and strategic fit with Virence,” said Ramzi Musallam, CEO and Managing Partner of Veritas Capital. “Virence and athenahealth have differentiated and complementary solutions, deep relationships with their respective customer bases and a shared culture of commitment to innovation. We look forward to leveraging our expertise in the sector, as well as the capabilities and solutions across both companies to provide superior value to customers, and create exciting growth opportunities for both sets of employees as Bob and the team build the future of healthcare IT.”

Veritas, a government and technology focused investor, has a proven track record of driving growth for companies within the healthcare technology space, as illustrated by the firm’s acquisition of Verscend Technologies and its combination with Cotiviti Holdings, as well as the firm’s investment in Truven Health Analytics. Veritas has a deep understanding of the urgent need to digitize the healthcare system and brings a culture of intense customer focus and a drive for growth through focused R&D and product innovation.

“We are excited by the opportunity to partner with athenahealth, one of the largest and most connected provider networks in the nation, to drive outcomes that matter the most to our customers,” said Bob Segert, Chairman and CEO of Virence. “athenahealth and Virence have complementary portfolios and highly-talented people, and this combination expands our depth and reach across the continuum of care. I’m looking forward to combining our mission-driven cultures to create an even stronger healthcare IT company.”

athenahealth investor Elliott Management Corporation (“Elliott”) has expressed support for the transaction. Elliott Partner Jesse Cohn said, “We are pleased to support this transformative transaction combining athenahealth and Virence, which we believe represents an outstanding, value-maximizing outcome for athenahealth shareholders.”

Upon completion of the transaction, Elliott’s private equity subsidiary, Evergreen Coast Capital, will retain a minority investment stake in the combined company.

Evergreen Managing Director Isaac Kim said, “We look forward to taking part in this unique opportunity. Under Bob’s leadership and with Veritas’ strategic oversight and strong track record of value creation, we believe the combined company will be a true leader in healthcare IT, ideally positioned to improve outcomes and reduce the cost of care.”

Approvals and Timing
The transaction is expected to close in the first quarter of 2019, subject to the approval of the holders of a majority of athenahealth’s outstanding shares and the satisfaction of customary closing conditions and regulatory approvals.

The athenahealth Board of Directors has unanimously approved the merger agreement and intends to recommend that athenahealth shareholders vote in favor of it at a Special Meeting of Stockholders, to be scheduled as soon as practicable.

The transaction is not subject to a financing condition.

Cancellation of Q3 2018 Earnings Call
In light of today’s announcement and the pending transaction, athenahealth will no longer be hosting its previously announced Q3 2018 earnings call today.

Advisors
Lazard and Centerview Partners are serving as financial advisors, and Weil, Gotshal & Manges LLP is serving as legal counsel to athenahealth.

Schulte, Roth & Zabel, LLP is acting as legal counsel to Veritas.

Deutsche Bank and RBC Capital Markets are acting as financial advisors to Evergreen, and Gibson, Dunn & Crutcher LLP is acting as legal advisor.

About athenahealth, Inc.
athenahealth partners with hospital and ambulatory customers to drive clinical and financial results. We offer medical record, revenue cycle, patient engagement, care coordination, and population health services. We combine insights from our network of more than 120,000 providers and approximately 117 million patients with deep industry knowledge and perform administrative work at scale. For more information, please visit www.athenahealth.com.

About Virence Health
Virence Health Technologies is a leading software provider that leverages technology and analytics to help healthcare providers across the continuum of care effectively manage their financial, clinical, and human capital workflows. Offering a comprehensive suite of innovative technology-enabled solutions, Virence aims to improve quality, increase efficiency, and reduce waste in the healthcare industry. Learn more at www.virencehealth.com.

About Veritas Capital
Veritas Capital is a leading private equity firm that invests in companies that provide critical products and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide, including those operating in the aerospace & defense, healthcare, technology, national security, communications, energy, government services and education industries. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means. For more information on Veritas Capital and its current and past investments, visit www.veritascapital.com.

About Elliott and Evergreen
Elliott Management Corporation manages two multi-strategy investment funds which combined have approximately $35 billion of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds of its kind under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm. This investment is being led by Evergreen Coast Capital, Elliott’s Menlo Park affiliate, which focuses on technology investing.

November 12, 2018 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 5 blogs containing over 11,000 articles with John having written over 5500 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 18 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

CareCloud Appoints Tom Cady as Vice President of Professional Services; Supporting Record Growth With Enhanced Implementation and Training Capabilities

Brings Close to 30 Years of Executive Management Experience in Consulting, Professional Services, and Sales in the Healthcare Technology Industry to Further CareCloud’s Market Momentum

BOSTON–(BUSINESS WIRE)– CareCloud, a leading provider of cloud-based practice management, electronic health records (EHR), and medical billing software and services, today announced that the Company has hired Tom Cady as its new Vice President of Professional Services. Mr. Cady will be responsible for managing CareCloud’s client implementation and training teams – an essential pillar in powering the Company’s more than 100% year-over-year revenue growth while continuing to enhance customer experience and success. Mr. Cady brings close to 30 years of executive management experience in consulting and professional services, sales and client service in the healthcare industry. He joins CareCloud as a member of its senior leadership team and will report to Albert Santalo, CareCloud’s Chairman and CEO, and will be based in the Company’s Boston office.

“Tom is quite simply the very best professional services executive in the healthcare IT industry and I could not be more thrilled to have him join CareCloud as we continue to scale our national cloud-based platform and streamline the way medical groups leverage our applications and services,” said Mr. Santalo. “The onboarding of clients onto our platform and subsequent training efforts is often the first and most important interaction any client experiences, setting the tone for the long-term relationship. Making sure we have the industry’s very best professional service capabilities and leadership is critical for us continuing to achieve such high client retention, satisfaction, and consistent revenue growth.”

“I have had the privilege to work with some amazing organizations and individuals throughout my time in the healthcare technology industry, while also being part of truly disruptive business models along the way,” said Mr. Cady. “Given the challenges facing the industry, it’s clear that cloud-based technologies are the logical option for helping medical practices optimize their financial and clinical operations. CareCloud, with its modern design, architecture, and workflow automation stands to disrupt how physicians and their staff use technology and I am excited to join such a vibrant and innovative culture.”

Mr. Cady joined CareCloud from athenahealth, Inc. (Nasdaq: ATHN), a provider of web-based software and services to medical groups, holding numerous executive positions over his eleven years at the company. During the last half of his tenure at athenahealth, Mr. Cady led the growth and scaling of the professional services department. Under his leadership, the organization grew in both staff and annual revenue implemented by over 500%. From 2002 to 2007, Mr. Cady also served as the athenahealth’s Regional Vice President of Sales. He was a key member of the sales leadership team that drove the Company’s revenue growth from $8 million to $117 million.

Prior to athenahealth, Mr. Cady spent more than seventeen years at IDX Corporation, a provider of software solutions for integrated healthcare delivery systems, group practices, and managed care organizations, that was purchased by GE Healthcare in 2006. During his tenure at IDX, Tom led the implementation organization of the company’s largest division and also built and expanded the company’s consulting practice into a $20 million business unit.

Mr. Cady holds a BS in Management from Bentley University.

About CareCloud

CareCloud is a leading provider of cloud-based practice management, electronic health record (EHR) and medical billing software and services for medical groups. The company’s products are connecting providers to one another – and to their patients – through a fully integrated digital healthcare ecosystem that can be accessed on any browser or device.

CareCloud is helping thousands of providers increase collections, streamline operations and improve patient care in more than 45 states. The company received over $20 million in Series A funding from Intel Capital and Norwest Venture Partners in 2011. To learn more about CareCloud, please visit www.carecloud.com.

June 18, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 5 blogs containing over 11,000 articles with John having written over 5500 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 18 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

HIMSS13: athenahealth Issues HIT Industry ‘Code of Conduct’

Code Lays Out Five Basic Principles to Move Industry Forward

WATERTOWN, MA, and NEW ORLEANS, LA March 4, 2013athenahealth, Inc. (NASDAQ: ATHN), a leading provider of cloud-based electronic health record (EHR), practice management, and care coordination services to medical groups and health systems, today proposed a Health Information Technology (HIT) ‘Code of Conduct’ that calls upon the health information industry, particularly electronic health record (EHR) vendors, to abide by five principles related to data portability, patient safety, provider freedom of choice, and Meaningful Use.

The HIT Code of Conduct responds to recent statements by National Coordinator for Health IT, Dr. Farzad Mostashari, who has challenged the industry (HIT vendors) to “step up” and agree to a Code of Conduct that sets forth principles to protect patients, guard against fraud, and empower HIT to finally realize its potential to revolutionize health care. Motivated by the challenge, athenahealth has outlined a framework that its peer vendors can sign on to, and other industry stakeholders can sign up in support of, and today launched an online portal to gather online “signatures.” The five principles HIT vendors are being challenged to adhere to are:

  • Empower Data Portability and Provider Choice
  • Build a True Nationwide Information Backbone
  • Protect Patients
  • Prevent Fraud
  • Drive Meaningful Use

“The HIT Code of Conduct is a call to the industry to abide by a uniform set of high standards that providers should expect and demand as they invest in technology and services as a means to improve care delivery,” said Jonathan Bush, CEO and Chairman of athenahealth. “These are things we’ve committed to do for our clients—things that we believe our industry must do if HIT is going to join the 21st century and finally realize its potential to transform healthcare.”

“These are simple propositions that we think can have a significant impact—if we get broad buy-in from our peer companies and the providers we all serve,” said Dan Haley, VP of Government Affairs, athenahealth.

Added Haley, “The principles in the Code squarely address some of the central policy issues facing the HIT industry, providing not only a push to move the industry forward, but also a strong signal to our providers and to government that our industry understands its responsibility to proactively address those issues.”

HIT vendors, industry stakeholders, and policymakers interested in reviewing the full Code of Conduct are encouraged to visit it here: http://www.athenahealth.com/codeofconduct, where vendors can sign on to the Code in full, or just to the provisions that apply to their businesses, and other stakeholders can sign on to publicly show their support.

About athenahealth

athenahealth, Inc. is a leading provider of cloud-based Best in KLAS electronic health record (EHR), practice management, and care coordination services to medical groups and health systems. athenahealth’s mission is to be the most trusted service to medical care givers, helping them do well by doing the right thing. For more information, please visit www.athenahealth.com or call 888-652-8200.

 

March 4, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 5 blogs containing over 11,000 articles with John having written over 5500 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 18 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.