Athenahealth’s stock jumps after buyout deal confirmed



[ad_1]

Shares of Athenahealth Inc.

ATHN, -3.63%

surged 9.3% in premarket trade Monday, after the hospital and ambulatory services company confirmed that it was being acquired in a deal valued at $5.7 billion by affliates of Veritas Capital and Elliott Management Corp.’s Evergreen Coast Capital. Under terms of the deal, the funds will pay $135 a share in cash for each Athenahealth share outstanding, which represents a 12% premium to Friday’s closing price of $120.35, and implies a market capitalization of $5.48 billion. Reuters had originally reported over the weekend that the deal will be announced on Monday. After the deal closes, which is expected to occur in the first quarter of 2019, Athenahealth is expected to combine with Virence Health, the GE Healthcare asset that Veritas acquired earlier this year. Athenahealth’s stock has tumbled 20% over the past three months through Friday, while the S&P 500

SPX, -0.92%

has slipped 1.8%.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.

[ad_2]
Source link