Private-equity firm Veritas Capital and hedge fund Elliott Management are acquiring US healthcare software maker Athenahealth in a deal worth about US$5.7 billion.
The all-cash deal values Athenahealth at US$135 per share, representing a premium of 12.2 percent to the stock’s closing price last Friday, Reuters reports.
Athenahealth had been under pressure from Elliott to sell itself since the hedge fund acquired a stake in the company last year.
In May Elliott made an unsolicited offer of US$160 per share for Athenahealth, a Massachusetts-based firm whose cloud-based software is used to track revenue from patients, physicians and hospitals.
The healthcare software maker has cut jobs and overhauled its management over the past year as part of a restructuring effort.
Once the deal is complete, Athenahealth will merge with Virence Health, the former GE Healthcare unit that Veritas acquired earlier this year, the report said, citing a company statement.
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