Bain Capital and Hellman & Friedman have acquired athenahealth for $17 billion.

Hellman & Friedman, Bain Capital acquire athenahealth for $17 billion

February 16, 2022
by John R. Fischer, Senior Reporter
Affiliates of Hellman & Friedman and Bain Capital have completed their acquisition of athenahealth for $17 billion.

Both companies agreed back in November to acquire the cloud-based enterprise software company from Veritas Capital and Evergreen Coast Capital. With it, they can now offer their customers access to the athenaOne cloud platform, which offers modules designed to address patient engagement, revenue cycle, telehealth, payments, population health and value-based care management.

The deal additionally puts them in contact with the more than 140,000 ambulatory care providers that are partnered with athenahealth. They are spread out across all 50 states and make up over 120 specialties.

"Both Hellman & Friedman and Bain Capital have deep expertise in healthcare, software, and technology, and they believe in our team and our strategy. We expect they will be strong partners who share our growth ambitions, our relentless focus on our customers, and our vision of creating a thriving ecosystem that delivers accessible, high-quality, and sustainable healthcare for all," Bob Segert, chairman and chief executive officer of athenahealth, told HCB News.

The deal confirms athenahealth's position as the largest and most innovative provider of cloud-based EHR and physician practice solutions across healthcare, according to Segert, who will continue to lead athenahealth in his current position following the completion of the deal, along with the company's current management team.

The change in ownership is also expected to provide new opportunities for team members and to bring in new talent to the organization.

The athenaOne cloud platform consists of SaaS technology that is paired with expert services and data-driven insights from the country’s largest single connected network. It can be expanded with the addition of differentiated apps, exchange clinical data across systems within users’ native workflow, and assess clinical and financial data.

Modules for the platform include patient engagement, revenue cycle, telehealth, payments, population health and value-based care management. Its products and technology are meant to help increase clinical efficiency, optimize financial performance, improve patient care outcomes, and help providers transition to value-based care.

"Our business model is aligned with many of the current market trends, such as a care shift to ambulatory settings and the emergence of value-based care," said Segert. "As a result, we believe athenahealth is well-positioned to be a long-term leader in healthcare IT."

Veritas Capital and Evergreen Coast Capital acquired the company back in November 2018 for roughly $5.7 billion in cash. Motivating it was a “steady deterioration in athenahealth's business” according to Leerink Partners analyst David Larsen. “Following another quarter of weak bookings and disappointing earnings, we believe athenahealth would likely have traded to ~$105-$110 per share without a deal," he said at the time.

In September 2021, the two were rumored to be exploring several options for the business, including a sale or initial public offering. The two were searching for a deal that would price the company at over $20 billion and reached out to half a dozen potential buyers to gauge interest.

athenahealth was founded in 1997 as a practice management company and EHR developer.

Investors in the deal consist of Hellman & Friedman, Bain Capital Private Equity and Bain Capital Tech Opportunities. Veritas Capital and Evergreen Coast Capital will each retain a minority investment in the company. New coinvestors include an affiliate of GIC and a wholly-owned subsidiary of the Abu Dhabi Investment Authority.