H&F, Bain Capital faucet into well being tech increase with $17 billion Athenahealth deal By Reuters

© Reuters. FILE PHOTO: The emblem of Bain Capital is displayed on the display throughout a information convention in Tokyo, Japan October 5, 2017. REUTERS/Kim Kyung-Hoon

(Reuters) -Personal-equity corporations Hellman & Friedman LLC and Bain Capital on Monday agreed to purchase Athenahealth for $17 billion, the newest signal of rising curiosity in firms powering the healthcare sector’s shift to the cloud.

Privately held Athenahealth gives software program that may assist set up affected person visits, doc affected person data and simplify funds. It competes with the likes of Cerner Corp (NASDAQ:).

Corporations offering cloud-based options to the healthcare sector have loved a requirement surge in the course of the COVID-19 pandemic as home-bound individuals flip to the online for his or her medical wants.

The increase has sparked a number of offers within the sector, together with Microsoft Corp (NASDAQ:)’s $16 billion buyout of Nuance Communications (NASDAQ:) Inc in April.

The healthcare business has additionally seen an increase in dealmaking by private-equity corporations, which have joined palms this 12 months to accumulate firms for enormous sums.

Blackstone (NYSE:), Carlyle Group (NASDAQ:) and Hellman & Friedman collectively agreed to purchase medical provide and tools firm Medline Industries Inc in June for $34 billion, together with debt. nL4N2M536I]

Athenahealth was taken non-public in 2019 by Evergreen Coast Capital, hedge fund Elliott’s non-public fairness arm, and funding agency Veritas in a $5.7 billion deal.

It later merged with Virence Well being, a healthcare software program supplier Veritas purchased from Common Electrical (NYSE:) Co.

“Following our take-private and mixture with Virence in 2019, Athenahealth delivered unmatched worth to its clients by considerably growing R&D funding,” stated Ramzi Musallam, CEO of Veritas Capital.

Veritas and Evergreen will retain a minority stake in Athenahealth, which may even be partially owned by different traders resembling Singapore sovereign wealth fund GIC.

The deal is anticipated to shut within the first quarter of 2022 and Bob Segert will proceed as the highest boss of Athenahealth.

Evercore and Goldman Sachs & Co (NYSE:) have been the lead monetary advisors to Athenahealth and Veritas Capital.

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