Athenahealth files its acquisition with SEC: 6 deal details

Athenahealth filed a realize with the Securities and Trade Fee detailing its shareholder vote on its proposed acquisition, consistent with HIStalk.

In November, non-public fairness company Veritas Capital and Evergreen Coast Capital, an associate of hedge fund Elliott Control, agreed to shop for athenahealth for an estimated $five.7 billion in money.

The phrases of the settlement give athenahealth shareholders $135 in money according to percentage, a top class of more or less 12 p.c over the corporate’s remaining inventory value on Nov. nine —  the ultimate buying and selling day ahead of the firms’ acquisition announcement Nov. 12.

Listed here are six issues to grasp in regards to the deal, as laid out by means of HIStalk:

1. The acquirers will tackle a number of billion bucks of debt to finance the purchase, together with $four.475 billion of debt financing.

2. In overall, 65 corporations expressed passion in obtaining athenahealth, 32 of that have been monetary sponsors. Becker’s Sanatorium Evaluation prior to now reported no less than 5 attainable bidders expressed passion in obtaining athenahealth, together with UnitedHealth and RCM corporate nThrive.

three. Former athenahealth CEO and co-founder Jonathan Bush will obtain $four.eight million below a prior to now negotiated separation settlement. He additionally owns 900,000 stocks within the corporate, valued more or less at $122 million.

four. Jeff Immelt, the previous head of GE who served as athenahealth government chairman, will depart the corporate with $420,000 and stocks value $1.eight million.

five. The sale was once it seems that precipitated by means of athenahealth’s board, which was once involved that the corporate can be not able to satisfy monetary expectancies. The board cited declining marketplace alternatives as a result of shoppers hardly ever transfer to athenahealth from competing platforms, a declining win charge and the wish to spend extra money on product construction.

6. Best athenahealth executives will obtain a one-year severance package deal; a yr’s bonus; 9 to 12 months of scientific and dental protection; complete vesting of unvested stocks; and as much as $10,000 in outplacement prices. That implies present athenahealth CFO Marc Levine will obtain about $five.five million.

After the purchase closes, Veritas plans to mix athenahealth with Virence Well being, a value-based care industry it received from GE Healthcare previous in 2018.

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