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H&F, Bain Capital tap into health tech boom with $17 bln Athenahealth deal

Nov 22 (Reuters) – Private-equity corporations Hellman & Friedman LLC and Bain Capital on Monday agreed to purchase Athenahealth for $17 billion, the newest signal of rising curiosity in corporations powering the healthcare sector’s shift to the cloud.

Privately held Athenahealth affords software program that may assist set up affected person visits, doc affected person information and simplify funds. It competes with the likes of Cerner Corp (CERN.O).

Companies 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.

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The boom has sparked a number of offers within the sector, together with Microsoft Corp’s (MSFT.O) $16 billion buyout of Nuance Communications Inc (NUAN.O) in April. learn extra

The healthcare business has additionally seen an increase in dealmaking by private-equity corporations, which have joined arms this yr to amass corporations for large sums.

Blackstone (BX.N), Carlyle Group (CG.O) and Hellman & Friedman collectively agreed to purchase medical provide and gear firm Medline Industries Inc in June for $34 billion, together with debt. nL4N2M536I]

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

It later merged with Virence Health, a healthcare software program supplier Veritas purchased from General Electric Co (GE.N).

“Following our take-private and combination with Virence in 2019, Athenahealth delivered unrivaled value to its customers by significantly increasing R&D investment,” mentioned Ramzi Musallam, CEO of Veritas Capital.

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

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

Evercore and Goldman Sachs & Co had been the lead monetary advisors to Athenahealth and Veritas Capital.

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Reporting by Amruta Khandekar; Editing by Shailesh Kuber and Aditya Soni

The logo of Bain Capital is displayed on the screen during a news conference in Tokyo, Japan October 5, 2017. REUTERS/Kim Kyung-Hoon

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