Evergreen Coast Capital to be Minority Investor in Combination of athenahealth and Veritas-Backed Virence
Bob Segert to Serve as Chairman and CEO
athenahealth, Inc., a leading provider of network-enabled services for hospital and ambulatory customers nationwide, announced today that it has completed its previously announced sale to an affiliate of Veritas Capital (“Veritas”) and Evergreen Coast Capital (“Evergreen”) for approximately $5.7 billion in cash.
Virence Health (“Virence”), the former GE Healthcare Value-based Care assets that Veritas acquired in 2018, will combine with athenahealth under the athenahealth name and brand. The combined company will be led by Virence Chairman and Chief Executive Officer Bob Segert and an executive leadership team comprised of executives from both companies, and will be headquartered on the athenahealth campus in Watertown, Massachusetts. As part of the transaction, Virence’s Workforce Management business becomes a separate Veritas portfolio company under the API Healthcare brand.
“The combination of athenahealth and Virence brings together two innovative companies with complementary expertise and a shared focus and passion for improving healthcare outcomes. With a network of over 160,000 providers, the combined company is positioned for future growth and new market opportunities and has the necessary scale to make a transformational impact in the healthcare industry,” said Ramzi Musallam, CEO and Managing Partner of Veritas Capital. “We look forward to leveraging our experience in healthcare IT to support Bob Segert and the leadership team in their mission to help clients succeed.”
Bob Segert, Chairman and CEO of the combined company, said: “athenahealth is one of the most unique and valuable assets in healthcare – with industry-leading solutions and a vision and model for delivering financial and clinical results for providers. By combining our companies’ cultures, solutions and teams, we have an opportunity to accelerate that vision, achieving a scale that will allow us to unlock new value for all of our customers. Today marks the first step in our new journey as a united team, and we are more committed than ever to investing in innovation, delivering a superior customer experience, and continuing our collective mission to transform healthcare.”
Evergreen Managing Director Isaac Kim said, “We are pleased to have completed this transaction along with our partners at Veritas. The combination of athenahealth and Virence creates an industry leader poised to drive the future of healthcare IT.”
The transaction was announced on November 12, 2018 and received approval from athenahealth shareholders on February 7, 2019. As a result of the completion of the transaction, shares of athenahealth common stock will be removed from listing on Nasdaq, with trading in athenahealth shares to be suspended following the closing of business today.