Private equity firms buying Athenahealth for $5.7 billion

Athenahealth headquarters building in Massachusetts.
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.

What's next for Athenahealth

Illustration: Sarah Grillo/Axios

Now that Jonathan Bush is out at Athenahealth, the health tech company he co-founded, expect an intense bidding war.

The big picture: The revelations of Bush's assault on his ex-wife and allegations of inappropriate sexual behavior at work tipped the scales for his ouster, all while Paul Singer's hedge fund was breathing down Athenahealth's neck. Even though the company has underwhelmed its investors, its cloud-based technology and data in the rapidly digitizing health care system are extremely appealing to a wide range of suitors.