Skip to main content
Sister Publication Links
  • ESG: THE NEW IMPERATIVE
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Digital Health
  • Insights
    • ACA 10 Years After
    • Best Practices
    • Special Reports
    • Innovations
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Supply Chain
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • MORE +
    • Contact Us
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Information Technology
November 22, 2021 10:55 AM

Athenahealth to be acquired by two private equity firms for $17B

Jessica Kim Cohen
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    deal-making-puzzle_i.png
    MH Illustration / Getty Images

    Athenahealth will be acquired by private-equity firms Bain Capital and Hellman & Friedman roughly three years after the company went private in a separate private-equity deal.

    Affiliates of Bain Capital and Hellman & Friedman plan to jointly acquire Athenahealth, a Watertown, Massachusetts-based developer of healthcare software, for $17 billion in a deal expected to close in the first quarter of 2022, the companies said Monday. Athenahealth's previous owners, Veritas Capital and Evergreen Coast Capital, will retain minority investments in the company.

    Bob Segert, chairman and chief executive officer of Athenahealth, said the acquisition "marks a significant milestone for Athenahealth."

    "We are thrilled to work with Hellman & Friedman and Bain Capital to drive the next phase of our growth journey," Segert said in a news release Monday. Segert will continue to lead Athenahealth with the company's current management team.

    More than 140,000 ambulatory care providers use Athenahealth's cloud-based software, which includes tools for electronic health records, patient engagement and revenue-cycle management.

    Athenahealth, previously a public company led by its co-founder Jonathan Bush, has been owned by private equity firms Veritas Capital and Evergreen Coast Capital since February 2019, when it was purchased for $5.7 billion. The two private equity firms combined Athenahealth with Virence Health, a value-based care business that Veritas Capital acquired from GE Healthcare in 2018.

    The Athenahealth acquisition followed an aggressive campaign by Evergreen Coast Capital's parent company, hedge fund Elliott Management, to purchase the company.

    Download Modern Healthcare’s app to stay informed when industry news breaks.

    Elliott Management in May 2018 made an unsolicited all-cash bid for Athenahealth worth nearly $7 billion, kicking off a monthslong question over the company's future. A month later in June 2018, Bush stepped down from his post as Athenahealth's CEO, as reports surfaced of violence against his now ex-wife and a settlement related to alleged sexual harassment.

    Bush now serves as CEO of a separate company he founded, called Zus Health, and serves as executive chairman of Firefly Health.

    Once the deal closes, Athenahealth will be majority owned by Hellman & Friedman, Bain Capital Private Equity and Bain Capital Tech Opportunities. Veritas Capital and Evergreen Coast Capital will retain minority investments alongside new investors GIC, Singapore's sovereign wealth fund, and a subsidiary of the Abu Dhabi Investment Authority.

    Allen Thorpe, a partner at Hellman & Friedman, in a news release said the firm plans to "rapidly scale the business" to link patients, payers and providers in a digital care network. David Humphrey, a managing director at Bain Capital Private Equity, said the firm will leverage its experience with vertical software and healthcare to support Athenahealth in developing new products and gaining market share.

    Bain Capital has been growing its reach in healthcare. Bain Capital Private Equity last week became a majority owner in InnovaCare Health, a value-based primary care provider group, and earlier this month a separate investment arm of Bain dropped $150 million to launch a new health insurance brokerage focused on the Medicare Advantage market.

    Related Article
    Bain Capital nabs majority stake in InnovaCare
    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Judy_Faulkner_Epic_HIMSS17_edit_i.jpg
    Epic outlines what's ahead for patient portal, Cosmos
    Cerner_fullsize_AP_i.jpg
    Cerner to pay $1.8M to resolve racial discrimination allegations
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Health IT Strategist (HITS) Newsletter: Sign up for the latest IT and medical technology news delivered 3 days a week (M, W, F).
     
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Digital Health
    • Insights
      • ACA 10 Years After
      • Best Practices
      • Special Reports
      • Innovations
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Supply Chain
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • MORE +
      • Contact Us
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing