=athenaHealth (ATHN) to be acquired by Elliott Management and Veritas for $135 per share

  

(Reuters) - Private equity firm Veritas Capital and hedge fund Elliott Management have agreed to acquire U.S. healthcare software maker Athenahealth Inc for $5.5 billion in cash, people familiar with the matter said on Sunday.

Athenahealth, whose cloud-based service is used to track revenue from patients, physicians and hospitals, had been under pressure to sell itself from Elliott, which has about a 9 percent stake in the company. As part of a restructuring effort this year, it has cut jobs and hired former General Electric Co Chief Executive Jeff Immelt as chairman.

The acquisition, which values Athenahealth at around $135 per share, will be announced on Monday, the sources said, asking not to be identified ahead of any official statement. Athnahealth shares ended trading on Friday at $120.35.

Athenahealth, Elliott and Veritas Capital did not immediately respond to requests for comment.

The deal comes just a few months after the departure of CEO Jonathan Bush last June. Bush, a nephew of former U.S. President George H.W. Bush, founded Athenahealth in 1997. He stepped down after issuing an apology following a newspaper report alleging he had assaulted his former wife 14 years earlier.

Elliott first made an unsolicited bid for Athenahealth in May of $160 per share. Since then, it has been in talks with various private equity firms about trying to buy the company, sources have said.

While activist investors such as Carl Icahn have acquired companies before, New York-based Elliott, with assets of more than $35 billion, is one of the few hedge funds with a dedicated team chasing buyouts.

A deal for Watertown, Massachusetts-based Athenahealth represents the largest deal to date for Elliott's private equity arm, which is called Evergreen. It is based in Menlo Park, California, and it is spearheaded by partner Jesse Cohn.

In its third-quarter results reported last Friday, Athenahealth said its revenue under its previous accounting standards was $331.4 million, an increase of 9 percent compared to the same period last year. Its net income over the three months that ended Sept. 30, 2018 was $44.5 million, or $1.08 per diluted share.

-=athenaHealth (ATHN) : Elliott Management plans to back away from bid for ATHN, according to NY Post

• Athenahealth shares tank after a report said Paul Singer's Elliott Management has backed away from its $160-a-share bid for the health-care company.
• Singer could be mulling a bid at a lower price, The New York Post reported Monday evening, citing sources.
• As a result of Singer's retreat, Athena has extended the final bid deadline by 10 days to next Thursday, the paper said.

Athenahealth ATHN shares tanked on Tuesday after a report said Paul Singer's activist firm Elliott Management has backed away from its $160-a-share bid for the health-care technology company.

Singer could be mulling a bid at a lower price, The New York Post reported Monday evening, citing sources. As a result of Singer's retreat, Athena has extended the final bid deadline by 10 days to next Thursday, the paper said.

Shares of Athenahealth, which sells a software platform to medical providers, were more than 11 percent lower in premarket trading Tuesday at about $127 per share. The stock is more than 7 percent higher so far this year.

Elliott Management officials weren't immediately available to comment. An Athena spokesperson said the company had no comment.

In May, Elliott Management said it was willing to pay that price — a total of $6.9 billion — contingent on due diligence. At the time, Elliott said its stake in the company was at 8.9 percent.

Athenahealth in June said it sought strategic alternatives after its founder and CEO Jonathan Bush stepped down, facing allegations that he attacked his then wife 13 years ago. When initially announcing the review, Athenahealth said it would consider a sale, merger or remaining an independent company.

Bush, nephew of former president George H.W. Bush , founded the health-care technology company in 1997.

=athenaHealth (ATHN) to be acquired by Elliott Management for $160/share

athenaHealth: Elliott Management confirms proposal to acquire athenahealth for $160/share in cash 
"For the past year, we have had extensive private engagement with athenahealth's management and the Board of Directors regarding the best path forward for the Company. This dialogue has been constructive, and we greatly appreciate how much time the management team, led by Jonathan, and the Board have invested in evaluating our perspectives as well as the perspectives of our fellow shareholders. Today, Elliott proposes to acquire athenahealth for $160 per share in cash. We believe we may also be able to substantially improve the proposed price with additional, private diligence....We strongly believe that this Proposal represents compelling, premium value to shareholders."

-=athenaHealth (ATHN) reported earnings on Fri 27 Apr 2018 (b/o)

athenaHealth beats by $0.52, beats on revs; guides FY18 revs in-line

• Reports Q1 (Mar) earnings of $1.25 per share, excluding non-recurring items, $0.52 better than the Capital IQ Consensus of $0.73; revenues rose 15.4% year/year to $329.4 mln vs the $318.13 mln Capital IQ Consensus.
  • Total Bookings for the three months ended March 31, 2018 were $52.2 million, compared to $77.3 million for the three months ended March 31, 2017.
• "We remain confident in our ability to deliver on our financial commitments this year and are reaffirming our fiscal year 2018 financial guidance."
• Co issues in-line guidancefor FY18, sees FY18 revs of $1.31-$1.38 bln vs. $1.35 bln Capital IQ Consensus Estimate. Non-GAAP operating margin expected to be 16%-17%.

-=athenaHealth (ATHN) reported earnings on Thur 1 Feb 2018 (a/h)

athenaHealth beats by $0.48, beats on revs 

• Reports Q4 (Dec) earnings of $1.11 per share, excluding non-recurring items, $0.48 better thanthe Capital IQ Consensus of $0.63; revenues rose 14.2% year/year to $329.2 mln vs the $319.64 mln Capital IQ Consensus.
• For the three months ended December 31, 2017, Service Automation Rate, formerly referred to as Non-GAAP Adjusted Gross Margin, was 68.0%, compared to 66.2% in the same period last year.
• "We plan to introduce our fiscal year 2018 guidance at our 2018 Investor Summit on February 15, 2018. We will provide our guidance prior to the impact of any new accounting standards to allow for comparability against historical results."

=athenaHealth (ATHN) reported earnings on Thur 19 Oct 2017 (a/h)

athenaHealth beats by $0.06, misses on revs; lowers FY17 guidance; announces increased cost savings, laying off 9% of workforce

• Reports Q3 (Sep) earnings of $0.56 per share, $0.06 better than the Capital IQ Consensus of $0.50; revenues rose 10.1% year/year to $304.6 mln vs the $310.52 mln Capital IQ Consensus.
• Co issues downside guidance for FY17, sees FY17 revs of $1.20-1.22 bln from $1.21-1.25 bln vs. $1.22 bln Capital IQ Consensus; booking to $300-350 mln from $350-400 mln; adj. profit to $135-150 mln from $120-140 mln.
• We continue to face weaker utilization trends and a more challenging demand environment. In addition, some of our non-athenaOne revenue initiatives are not ramping as quickly as planned. We also expect a negative impact of approximately $4 million on our 2017 revenue from hurricanes Harvey and Irma. Despite these growth headwinds, we are making progress on our initiatives to run the business more efficiently while continuing to focus on growth in 2018 and beyond.
• As previously announced on August 1, 2017, the Board of Directors and mgmt team have been conducting a strategic review of our operational and financial strategy, leadership and governance. As a result of this review, today we are announcing an increase to our previously identified cost savings target. On October 13, 2017, the Board approved a comprehensive strategic plan to generate $100 million to $115 million of gross pre-tax expense savings. Co expects to reduce workforce by ~9%.
• "Looking ahead to 2018, while we are still working through our annual budget process, and are not yet in a position to provide guidance, we are committing to significant operating margin improvement next year. We are holding ourselves accountable to achieve at least 15% non-GAAP operating margin in 2018.

=athenaHealth (ATHN) reported earnings on Thur 27 April 2017 (a/h)

athenaHealth misses by $0.14, misses on revs; guides FY17 revs below consensus:

• Reports Q1 (Mar) earnings of $0.32 per share, excluding non-recurring items, $0.14 worse than the Capital IQ Consensus of $0.46; revenues rose 11.4% year/year to $285.4 mln vs the $296.49 mln Capital IQ Consensus.
• "We're making progress on our strategic priorities. In the first quarter, we continued to reduce client work, enhance our offering in the small hospital market, and invest in our platform to support our growth," said Karl Stubelis, chief financial officer, athenahealth."While we grew the topline more than 11%, revenue during the first quarter came in below our expectations and we're revising our outlook for the year. Beyond 2017, we remain confident in the opportunity we have to drive long-term revenue and earnings growth."
• Co issues downside guidance for FY17, sees FY17 revs of $1210.0-$1.250 bln vs. $1.29 bln Capital IQ Consensus Estimate.
  • Sees Non-GAAP adjusted operating income between $120 mln-$140 mln

=athenaHealth (ATHN) reported earnings on Thur 2 Feb 2017 (a/h)

WATERTOWN, Mass. (AP) _ Athenahealth Inc. (ATHN) reported fourth-quarter net income of $9.8 million.

On a per-share basis, the Watertown, Massachusetts-based company said it had net income of 24 cents. Earnings, adjusted for one-time gains and costs, were 62 cents per share.

The results topped Wall Street expectations. The average estimate of 19 analysts surveyed by Zacks Investment Research was for earnings of 51 cents per share.

The maker of billing and medical practice management software posted revenue of $288.2 million in the period, which missed Street forecasts. Seventeen analysts surveyed by Zacks expected $303.4 million.

For the year, the company reported profit of $21 million, or 52 cents per share. Revenue was reported as $1.08 billion.

Athenahealth expects full-year revenue in the range of $1.29 billion to $1.33 billion.

Athenahealth shares have increased 20 percent since the beginning of the year. In the final minutes of trading on Thursday, shares hit $126.64, a fall of 10 percent in the last 12 months.

athenaHealth (ATHN) reported earnings on Thur 21 Jul 2016 (a/h)

** charts after earnings **

  

athenaHealth misses by $0.08, misses on revs; reaffirms FY16 EPS guidance, revs guidance; COO to resign :

• Reports Q2 (Jun) earnings of $0.34 per share, $0.08 worse than the Capital IQ Consensus of $0.42; revenues rose 16.6% year/year to $261.9 mln vs the $274.16 mln Capital IQ Consensus.
• Non-GAAP Adjusted Gross Margin was 62.8%, compared to 63.3% in the same period last year.
• Co reaffirms guidance for FY16, sees EPS at or above mid-point of $1.65-$1.85 guidance range, vs. $1.80 Capital IQ Consensus Estimate; sees FY16 revs at or above mid-point of $1.085-$1.115 bln guidance range, vs. $1.12 bln Capital IQ Consensus Estimate. Sees Non-GAAP Adj. Gross Margin of 63.5-64.5% and Adj. Operating Income of $120-$135 mln.
• The company also announced that chief operating officer Ed Park will begin a yearend transition from his current role and is expected to thereafter be elected to the board of directors.