athenahealth to be Acquired by Hellman & Friedman and Bain Capital for $17 Billion
Watertown, Ma., November 22, 2021 – athenahealth, Inc., a prominent provider of cloud-based enterprise software solutions for medical groups and health systems, has entered into a definitive agreement to be jointly acquired by affiliates of Bain Capital and Hellman & Friedman for $17 billion.
The acquisition, which comes from Veritas Capital and Evergreen Coast Capital, reinforces athenahealth’s position as a leading provider of cloud-based electronic medical record and physician practice solutions in the United States. athenahealth currently partners with more than 140,000 ambulatory care providers across all 50 states and over 120 specialties, aiming to accelerate the pace of healthcare innovation and support leading clinical and financial outcomes.
athenahealth’s solutions and services allow customers to increase clinical efficiency, optimize financial performance, as well as improve patient care outcomes, supporting providers as they shift toward value-based care.
The company’s athenaOne cloud platform covers all critical aspects of a physician’s practice – including patient engagement, revenue cycle, telehealth, payments, population health, and value-based care management modules. This suite of capabilities is delivered by combining SaaS technology with the expert services and data-driven insights from the country’s largest single connected network.
“Today marks a significant milestone for athenahealth,” said Bob Segert, chairman & chief executive officer of athenahealth. “We are thrilled to work with Hellman & Friedman and Bain Capital to drive the next phase of our growth journey.”
Segert will continue to lead the company with the current management team.
Allen Thorpe, a partner at Hellman & Friedman, added, “Given our deep experience in software and healthcare, we are excited to work with Bob and the executive team to rapidly scale the business and continue to innovate.”
Sameer Narang, another Hellman & Friedman partner, noted, “athenahealth’s technology leadership has differentiated the Company as a next generation cloud-based SaaS technology platform, facilitating innovation in a rapidly evolving and dynamic market.”
Devin O’Reilly, a managing director at Bain Capital Private Equity, stated, “athenahealth is at the frontier of digital health in the United States, enhancing the clinical quality, operational efficiency, and delivery of preventive care.”
David Humphrey, a managing director at Bain Capital Private Equity, added, “We are excited to leverage our extensive vertical software and healthcare experience to help Bob and the management team accelerate growth.”
Ramzi Musallam, CEO and managing partner of Veritas Capital, stated, “Following our take-private, and combination with Virence in 2019, athenahealth delivered unrivaled value.”
Jesse Cohn, managing partner on behalf of Evergreen Coast Capital, added, “athenahealth demonstrates what can happen when a team of dedicated and talented employees and executives is given the right resources to invest in innovation.”
In addition to Hellman & Friedman, Bain Capital Private Equity and Bain Capital Tech Opportunities, the investor group includes Veritas Capital and Evergreen Coast Capital, which will each retain a minority investment in athenahealth, alongside other new coinvestors, including GIC, Singapore’s sovereign wealth fund, and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
The investment which is subject to regulatory approvals and customary closing conditions, is expected to be completed in the first quarter of 2022.
Evercore and Goldman Sachs & Co. LLC. are serving as lead financial advisors, and Milbank LLP as legal advisor, to athenahealth and Veritas Capital. Deutsche Bank Securities Inc., Barclays, Morgan Stanley & Co. LLC., BMO Capital Markets, BofA Securities, Inc. and J.P. Morgan Securities LLC are serving as financial advisors, and Kirkland & Ellis LLP as legal advisor, to Hellman & Friedman and Bain Capital.
