Nov 12, 2018

Private equity firms buying Athenahealth for $5.7 billion

Caption. Photo: Gordon Chibroski/Portland Press Herald via Getty Images

Two private equity firms — Veritas Capital and Evergreen Coast Capital, a subsidiary of Elliott Management — are acquiring Athenahealth in a $5.7 billion all-cash deal that values the company far below initial offers.

The bottom line: So ends the long, drawn-out process of what would happen to the large but struggling electronic health records and billing firm. Athenahealth co-founder Jonathan Bush, who stepped down in June over allegations of sexual assault and misconduct, stands to cash out $142 million in the buyout.

Details: Athenahealth will soon be combined with other health technology companies in the private equity firms' portfolios, including GE's old health care assets as well as the new payments and data mining companies that Veritas bought earlier this year.

  • Shareholders still need to approve the deal.
  • Athenahealth is on pace for almost $1.3 billion of revenue this year, with a 9% net profit margin.

Go deeper

UFC wants to host fight on tribal land to avoid coronavirus restrictions

Illustration: Aïda Amer/Axios

In an attempt to skirt federal and state guidelines during the coronavirus pandemic, the UFC plans to hold its April 18 pay-per-view event on tribal land in California, per multiple reports.

The state of play: Even as the rest of the sports world hits pause, UFC president Dana White has remained adamant that fights must go on, and appears to have settled for a shutdown casino in a state with the fourth-most confirmed cases of coronavirus.

Go deeperArrow13 mins ago - Sports

Ivanka Trump plans focus on coronavirus recovery for small businesses

Ivanka Trump speaks at yesterday's White House videoconference with bank and credit card executives. Photo: Kevin Lamarque/Reuters

Ivanka Trump personally lobbied top bank executives to line up the $1.5 billion in commitments to small business that were announced yesterday at a videoconference among the bank executives and President Trump — stoking competitive juices among the execs to drive up their commitments.

The state of play: Ivanka, who has had workforce development in her portfolio going back to 2017, plans an increasing emphasis on small businesses in the weeks ahead as they navigate the rescue bill’s Payroll Protection Program, sources tell me.

Public transit's death spiral

Illustration: Eniola Odetunde/Axios

Public transit systems across the country are experiencing a painful trifecta: Ridership has collapsed, funding streams are squeezed, and mass transit won't bounce back from the pandemic nearly as fast as other modes of transportation.

Why it matters: Transit agencies could see an annual shortfall of as much as $38 billion due to the coronavirus pandemic, according to TransitCenter. At the same time, they're more important than ever, with more than 36% of essential workers relying on public transportation to get to work.

Go deeperArrow4 hours ago - Health