Activist investor firm Elliott Management on Monday submitted an all-cash offer for Athenahealth, a deal that could be worth as much as $7 billion.
Elliott, which is owned by billionaire activist Paul Singer, already has a 9.2 percent stake in the company, according to CNBC, which first reported the news of the bid. The firm offered Athenahealth $160 per share, a 26 percent premium to the Watertown, Mass.-based company’s Friday share price.
“We are faced now with the stark reality that Athenahealth as a public-company investment, despite all of its promise, has not worked for many years, is not working today and will not work in the future,” Elliott wrote in a letter to Athenahealth’s management. “Given Athenahealth’s potential, this reality is deeply frustrating,”
Athenahealth said in a statement that it will “carefully review the proposal to determine the best course of action.” The company reported that revenue increased 15 percent to $329 million in the first three months of the year.
