Mergers & Acquisitions

Athenahealth has received multiple bids, according to CNBC. The prices, reportedly at $131 per share are below a previous cash bid for the healthcare software firm in an unsolicited move by Paul Singer’s Elliott Management. WHY IT MATTERS Hospital CIOs and CFOs that are either already subscribing to athenahealth’s cloud-based EHR or practice management services or considering switching to a new cloud vendor need to know where the company stands. Will it be bought by another EHR maker or taken over by activist investors looking to break it up to make a profit? Or another fate altogether? Those questions will remain unanswered until athenahealth is either acquired or the board makes up its mind to remain independent. THE TREND CNBC’s report was based on anonymous sources and did not name which companies might be among the multiple bidders. Earlier this month, however, Healthcare IT News reported that activist investor Elliott Management was putting the brakes on its takeover bid, just two weeks after speculation arose that Elliott might be athenahealth’s best suitor with potential acquirer’s Cerner and UnitedHealth not interested. Elliott Management already owns 9 percent of athenahealth’s stock and offered as much as $7 billion in a buyout offer earlier this year. In June, CEO Jonathan Bush stepped down following reports of sexual misconduct and domestic abuse. Twitter: @SusanJMorse Email the writer: susan.morse@himssmedia.com

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The ongoing saga of athenahealth and Elliott Management continues. Shares of the cloud-based health IT company fell sharply Tuesday morning on news that the hedge fund – which has recently been seen as the most likely candidate to acquire the company after a long and contentious courtship – has reportedly recoiled from the $160 share price. While activist investor Paul Singer may finally be throwing in the towel after many months of pressure on the Watertown, Massachusetts company, he may also simply be angling for a lower price. Reports earlier this month, in fact, indicated that EHR rival Cerner and insurer UnitedHealthcare are not interested in athenahealth. Now, athenahealth seems willing to be patient and weigh its options, having extended the due date for a final bid by 10 days, according to the New York Post. Elliott Management had indicated its willingness to pay the $160 share price, a total of some $6.9 billion, for the company in May. But by June – when athenahealth founder and CEO Jonathan Bush was forced to step down after allegations of past domestic violence – at least one Wall Street observer wondered whether the sale process might eventually drag on so long that Elliott would rescind its offer, likely knocking the share price back down to the $135-$140 range. Twitter: @MikeMiliardHITN Email the writer: mike.miliard@himssmedia.com

Former CEO Jonathan Bush could receive $4.8 million if he helps with the sale of the cloud IT company, according to a report that shows Elliott partnering with Bain Capital.

The company will continue to develop integration technology help hospitals with EHR optimization, medical device integration, interoperability and other functions.

As part of the deal, Cerner will own a minority stake in the health plan and the two companies will co-create Maestro Advantage, billed as a tool to help health systems manage the demands of Medicare Advantage.

After an eventful few years in which it was taken private, made the biggest tech acquisition in history and retooled itself for the new century, Dell is expected to return to the market in a $21.7 billion deal next week.

The New England-based startup delivers medications and coordinates refills and renewals.

We asked for your thoughts on athenahealth’s next steps now that Jonathan Bush stepped down as CEO, and the resounding majority said athenahealth should not sell to Elliott Management.

The acquisition of the company, which offers emergency department, anesthesiology, radiology and teleradiology and hospitalist services, is expected to close in the fourth quarter of 2018.