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athenahealth, Healthcare Technology Leader, to be Acquired by Hellman & Friedman and Bain Capital for $17 Billion

November 22, 2021

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athenahealth, Healthcare Technology Leader, to be Acquired by Hellman & Friedman and Bain Capital for $17 Billion

Watertown, Ma., November 22, 2021 – athenahealth, Inc. (“athenahealth” or “the Company”), a leading provider of cloud-based enterprise software solutions for medical groups and health systems nationwide, today announced it has entered into a definitive agreement to be jointly acquired by affiliates of Bain Capital and Hellman & Friedman for $17 billion. The purchase from Veritas Capital and Evergreen Coast Capital affirms athenahealth’s position as the largest and most innovative provider of cloud-based electronic medical record and physician practice solutions across the healthcare continuum in the United States. 

athenahealth partners with more than 140,000 ambulatory care providers, throughout all 50 states and across more than 120 specialties, to accelerate the pace of healthcare innovation and support the delivery of leading clinical and financial outcomes. athenahealth’s solutions and services enable its customers to increase clinical efficiency, optimize financial performance, improve patient care outcomes, and support providers in accelerating their shift toward value-based care. The Company’s athenaOne cloud platform addresses the critical aspects of a physician’s practice – with modules spanning patient engagement, revenue cycle, telehealth, payments, population health, and value-based care management. athenahealth delivers this suite of capabilities to customers by combining powerful SaaS technology with the expert services and data-driven insights that come from the country’s largest single connected network. 

“Today marks a significant milestone for athenahealth and our partnership with Veritas Capital and Evergreen Coast Capital, and we are thrilled to work with Hellman & Friedman and Bain Capital to drive the next phase of our growth journey. Our employees, customers, and partners are the source of our success and inspiration as we create a thriving ecosystem that delivers accessible, high-quality, and sustainable healthcare for all,” said Bob Segert, chairman & chief executive officer of athenahealth, who will continue to lead the Company along with the current management team.

“Given our deep experience in software and healthcare, we are excited to work with Bob and the executive team to rapidly scale the business and continue to innovate and grow alongside our most disruptive and innovative ambulatory care clients to build the foundations of a multi-sided digital care network between patient, payer, and provider,” said Allen Thorpe, partner at Hellman & Friedman.  “athenahealth’s technology leadership has differentiated the Company as a next generation cloud-based SaaS technology platform, facilitating innovation in a rapidly evolving and dynamic market,” added Sameer Narang, partner at Hellman & Friedman.

“athenahealth is at the frontier of digital health in the United States, enhancing the clinical quality, operational efficiency, and delivery of preventive care to nearly 20% of the population today, unlocking the front door of the consumer healthcare journey and positioning the Company to support physicians in the continuing shift towards value-based care,” said Devin O’Reilly, a managing director at Bain Capital Private Equity. “We are excited to leverage our extensive vertical software and healthcare experience to help Bob and the management team accelerate growth, develop new products, gain market share, and continue to innovate in a highly scalable and vitally important end market,” added David Humphrey, a managing director at Bain Capital Private Equity.

“Over the course of our successful partnership with Bob and the management team, athenahealth has driven tremendous growth and transformation, reinforcing its position as the premier healthcare IT company supporting the largest nationwide network of healthcare providers,” said Ramzi Musallam, CEO and managing partner of Veritas Capital. “Following our take-private and combination with Virence in 2019, athenahealth delivered unrivaled value to its customers by significantly increasing R&D investment resulting in higher quality care, lower costs across the healthcare ecosystem, and overall improved patient outcomes. We are thrilled to continue to support the Company alongside Evergreen, Hellman & Friedman, and Bain Capital in the years ahead.”

“athenahealth demonstrates what can happen when a team of dedicated and talented employees and executives is given the right resources to invest in innovation and to help improve the quality of care that its providers are able to deliver,” said Jesse Cohn, managing partner, and Marc Steinberg, senior portfolio manager, on behalf of Evergreen Coast Capital, an affiliate of Elliott Investment Management. “Elliott is proud to have worked with Veritas to help transform athenahealth, and we welcome Hellman & Friedman and Bain Capital as new stewards of this unique and important healthcare leader.”

In addition to Hellman & Friedman, Bain Capital Private Equity, and Bain Capital Tech Opportunities, the investor group includes Veritas Capital and Evergreen Coast Capital, which will each retain a minority investment in athenahealth, as well as other new coinvestors, including GIC, Singapore’s sovereign wealth fund, and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

The investment is expected to be completed in the first quarter of 2022 and is subject to regulatory approvals and customary closing conditions.

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, BofA Securities, Inc. and J.P. Morgan Securities LLC are serving as financial advisors, and Kirkland & Ellis LLP as legal advisor, to Hellman & Friedman and Bain Capital.

About athenahealth, Inc.
athenahealth creates innovative healthcare technology that connects clinicians, patients, payers, and partners in differentiated ways. Our electronic health records, revenue cycle management, and patient engagement tools allow anytime, anywhere access, driving better financial outcomes for our customers and enabling our provider customers to deliver better quality care. In everything we do, we’re inspired by our vision to create a thriving ecosystem that delivers accessible, high-quality, and sustainable healthcare for all. For more information, please visit www.athenahealth.com.

About Hellman & Friedman 
Hellman & Friedman is a preeminent global private equity firm founded in 1984 with a distinctive investment approach focused on large-scale equity investments in high quality growth businesses. H&F seeks to partner with world-class management teams where its deep sector expertise, long-term orientation and collaborative partnership approach enable companies to flourish. H&F targets outstanding businesses in select sectors including software & technology, financial services, healthcare, consumer & retail, and other business services. The firm is currently investing its tenth fund, with $24.4 billion of committed capital, and has over $95 billion in assets under management as of September 30, 2021. Learn more about H&F’s defining investment philosophy and approach to sustainable outcomes at www.hf.com.

About Bain Capital 
Bain Capital has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity (http://www.baincapitalprivateequity.com) has a global team of more than 275 investment professionals which creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare and technology. The firm has offices on four continents and has made primary or add-on investments in more than 1,000 companies since its inception. Among these investments has been partnering with dynamic healthcare companies dedicated to quality, access, innovation and improved patient outcomes (to learn more please visit https://www.baincapital.com/healthcare/), and with scale and disruptive technology businesses where the firm’s in depth knowledge of fundamental trends, insight into evolving customer dynamics, and vertical market expertise helps accelerate growth. In addition to private equity, Bain Capital invests across asset classes including credit, public equity, venture capital, real estate and insurance, managing approximately $150 billion in total and leveraging the firm's shared platform to capture opportunities in strategic areas of focus.

About Veritas Capital
Veritas is a longstanding technology investor with a focus on companies operating at the intersection of technology and government. The firm invests in companies that provide critical products, software, and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means.
Leveraging technology to make a positive impact across vitally important areas, such as healthcare, education, and national security, is core to Veritas. We are proud stewards of national assets, improving the quality of healthcare while reducing cost, advancing our educational system, and protecting our nation and allies. For more information, visit www.veritascapital.com.  

About Elliott and Evergreen 
Elliott Investment Management L.P. manages more than $48 billion of assets. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm. Evergreen Coast Capital Corp. is Elliott’s Menlo Park affiliate, which focuses on technology investing.