The digital health giant athenahealth, Inc. has found two new investors in a $17 billion acquisition. Affiliates of Hellman & Friedman and Bain Capital are joining up to purchase athenahealth from Evergreen Coast Capital and Veritas Capital, which acquired athenahealth and took it private back in 2019 for $5.7 billion.
athenahealth partners with more than 140,000 ambulatory care providers, throughout all 50 states and across more than 120 specialties to help these businesses improve care while also optimizing financial performance. The company’s software suite, including its athenaOne cloud platform, provides physician practice-focused services, such as patient engagement, revenue cycle, telehealth, payments, population health, and value-based care management. The company hasn’t announced a new acquisition in several years but has instead grown through partnerships and collaborations. Florence Health, a primary-care provider, has agreed to begin using the anthenaOne platform at its practices, athenahealth announced last week.
This deal reflects the growing demand for digital health solutions caused by the COVID-19 pandemic as more and more patients turn to the internet, mobile applications, and telehealth for care. Other deals, such as Microsoft Corp.‘s purchase of Nuance Communications for $19.7 billion in April 2021, and Teladoc Health‘s acquisition of Livongo Health, Inc. for $18.5 billion, also highlight this demand.
Devin O’Reilly, a managing director at Bain Capital Private Equity said that athenahealth helps with the delivery of “preventive care to nearly 20% of the population today.”
In addition to Hellman & Friedman, Bain Capital Private Equity, and Bain Capital Tech Opportunities, other new co-investors include GIC, Singapore’s sovereign wealth fund, and a wholly owned subsidiary of the Abu Dhabi Investment Authority. Veritas Capital and Evergreen Coast Capital will each retain a minority investment in athenahealth
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, and BofA Securities, Inc. are serving as financial advisors, and Kirkland & Ellis LLP as legal advisor, to Hellman & Friedman and Bain Capital.
The investment is expected to be completed in the first quarter of 2022.
