Athenahealth Is Has Bidder Interest Over $135 Per Share

(Bloomberg) -- Athenahealth Inc. is attracting interest from at least five potential bidders as an auction for the health record technology company nears an end, according to people familiar with the offer.

Private equity players including Bain Capital, Hellman & Friedman, Clayton, Dubiliar & Rice and TPG are considering bids for the Watertown, Massachusetts-based company, the people said, asking not to be identified because the matter is private. Elliott Management Corp., the sometimes-activist fund run by billionaire Paul Singer, is also weighing a bid, they said.

Elliott, which owns 9 percent of Athenahealth, may keep that stake if it is unsuccessful in acquiring the company, the people said.

Athenahealth has received indications of interest above $135 a share, they said, with final bids due by the end of the month.

Representatives for Athenahealth, Elliott, Bain, Hellman & Friedman, Clayton Dubiliar and TPG declined to comment.

Elliott has been agitating for changes at Athenahealth since May 2017. The New York hedge fund said in May 2018 it was prepared to offer $160 per share for the company, subject to due diligence.

In June, Athenhealth Chief Executive Officer Jonathan Bush stepped down following allegations of misconduct. At the time, the company said it would also explore a sale or merger and would commence a CEO search.

Earlier offers for Athenahealth came in below Elliott’s $160-a-share proposal, the people said. The company reached out to some bidders who had balked at that valuation and some reentered the process, they said.

Athenahealth shares have fallen 4.7 percent this year. They rose about 4.8 percent to close at $126.61 on Friday in New York trading, giving the company a market value of almost $5.1 billion.

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