Athenahealth, Virence Health
- Other involved companies: Veritas Capital, Elliot Management
- Type of deal: Acquisition, subsequent merger
- Announcement date: Nov. 12, 2018
- Close date: Feb. 11, 2019
- Deal value: $5.7 billion
- Name of new company: Athenahealth
- Total number of employees of combined company: Approximately 5,000
- Headquarters of combined company: Watertown, Massachusetts
- Leadership of combined company: Bob Segert, CEO (former Virence Health CEO); executives representing both companies
What's the latest? Athenahealth’s sale to Veritas Capital and subsequent merger with Virence Health, a value-based care company purchased by Veritas from GE, was a complex deal that finally closed on Feb. 11, 2019.
The process started when Elliot Management, which owned 9% of the electronic health records company, began to pressure athenahealth to accept a takeover deal valued at $7 billion. This set off a chain of events that led to the resignation of athenahealth’s CEO, Johnathan Bush.
Athenahealth’s shareholders approved Veritas’ bid on Feb. 7. Since the closure, the combined company announced that it would lay off 4% of its workforce as part of the reorganization process.