This content is not available in your region

H&F, Bain Capital tap into health tech boom with $17 billion Athenahealth deal

H&F, Bain Capital tap into health tech boom with $17 billion Athenahealth deal
H&F, Bain Capital tap into health tech boom with $17 billion Athenahealth deal   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p> -Private-equity firms Hellman & Friedman <span class="caps">LLC</span> and Bain Capital on Monday agreed to buy Athenahealth for $17 billion, the latest sign of rising interest in companies powering the healthcare sector’s shift to the cloud.</p> <p>Privately held Athenahealth offers software that can help organize patient visits, document patient records and simplify payments. It competes with the likes of Cerner Corp. </p> <p>Companies providing cloud-based solutions to the healthcare sector have enjoyed a demand surge during the <span class="caps">COVID</span>-19 pandemic as home-bound people turn to the web for their medical needs.</p> <p>The boom has sparked several deals in the sector, including Microsoft Corp’s $16 billion buyout of Nuance Communications Inc in April.</p> <p>The healthcare industry has also seen a rise in dealmaking by private-equity firms, which have joined hands this year to acquire companies for huge sums.</p> <p>Blackstone, Carlyle Group and Hellman & Friedman together agreed to buy medical supply and equipment company Medline Industries Inc in June for $34 billion, including debt. nL4N2M536I]</p> <p>Athenahealth was taken private in 2019 by Evergreen Coast Capital, hedge fund Elliott’s private equity arm, and investment firm Veritas in a $5.7 billion deal. </p> <p>It later merged with Virence Health, a healthcare software provider Veritas bought from General Electric Co.</p> <p>“Following our take-private and combination with Virence in 2019, Athenahealth delivered unrivaled value to its customers by significantly increasing R&D investment,” said Ramzi Musallam, <span class="caps">CEO</span> of Veritas Capital.</p> <p>Veritas and Evergreen will retain a minority stake in Athenahealth, which will also be partially owned by other investors such as Singapore sovereign wealth fund <span class="caps">GIC</span>.</p> <p>The deal is expected to close in the first quarter of 2022 and Bob Segert will continue as the top boss of Athenahealth. </p> <p>Evercore and Goldman Sachs & Co were the lead financial advisors to Athenahealth and Veritas Capital.</p> </div>