Medical software company acquired by private equity firms

Cloud-based enterprise software behemoth athenahealth is being acquired by private equity firms in a $17 billion deal.

According to a news release, athenahealth has entered into a definitive agreement to be jointly acquired by affiliates of venture capital firms Bain Capital and Hellman & Friedman. They are being purchased by Veritas Capital and Evergreen Coast Capital in an affirmation of the company’s position as the largest provider of cloud-based electronic medical record and physician practice solutions across healthcare.

athenahealth is partnered with more than 140,000 ambulatory care providers through all 50 states and more than 120 specialties in their effort to accelerate the pace of healthcare innovation and support delivering clinical and financial outcomes, the release says.

“Today marks a significant milestone for athenahealth and our partnership with Veritas Capital and Evergreen Coast Capital, and we are thrilled to work with Hellman & Friedman and Bain Capital to drive the next phase of our growth journey,” Bob Segert, chairman and CEO of athenahealth, who will continue to lead the company along with the current management team, says in the release. “Our employees, customers, and partners are the source of our success and inspiration as we create a thriving ecosystem that delivers accessible, high-quality, and sustainable healthcare for all.”

“Given our deep experience in software and healthcare, we are excited to work with Bob and the executive team to rapidly scale the business and continue to innovate and grow alongside our most disruptive and innovative ambulatory care clients to build the foundations of a multi-sided digital care network between patient, payer, and provider,” Allen Thorpe, partner at Hellman & Friedman, says in the release.

“athenahealth is at the frontier of digital health in the United States, enhancing the clinical quality, operational efficiency, and delivery of preventive care to nearly 20% of the population today, unlocking the front door of the consumer healthcare journey and positioning the Company to support physicians in the continuing shift towards value-based care,” Devin O’Reilly, a managing director at Bain Capital Private Equity, says in the release.