EHR Vendor Athenahealth Taken Over In $17B Private Equity Megadeal

Bain Capital and Hellman & Friedman have joined forces in putting up a whopping $17 billion to acquire EHR vendor Athenahealth. A blend of equity and debt will provide the funding for this buyout of current owners Evergreen Coast Capital and Veritas Capital, both of which will nonetheless keep a minority stake in Athena. The deal is expected to close sometime in the first quarter of 2022.

Athenahealth offers providers cloud-based software to aid practices with telehealth processes such as population health management and medical record maintenance, in addition to other functions. Though the company boasted a client base of 140,000 ambulatory care providers across the U.S. and branded itself the largest provider of cloud-native EHR and IT tools in the nation, it had shown signs of foundering through weakening revenue and low bookings before being taken private in 2019.

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The move to privatization was the choice of Evergreen and Veritas; they shelled out $5.7 billion for Athenahealth in 2019. That tenure featured a Virence Health Technologies merger, significant layoffs, and a rebranding that prioritized a platform-as-a-service EHR model. Luckily for Evergreen and Veritas, healthtech demand has flourished since that deal. Now, along with their remaining investment and the Hellman & Friedman/Bain transaction, new co-investors include Singapore's sovereign wealth fund GIC and a wholly owned subsidiary of the Abu Dhabi Investment Authority.