Elliott Management Makes $160-Per-Share Takeover Offer For Athenahealth

Activist investor Elliott Management confirmed Monday it is working to fully acquire athenahealth, Inc ATHN.

What Happened

CNBC's David Faber reported Monday morning that Paul Singer's Elliott Management, already an 8.9-percent owner of Athenahealth, is prepared to pay $155 to $160 per share to fully acquire the health care technology company. Shortly after the CNBC report, Singer's firm confirmed his intention to buy the company for $160 per share in a public letter to the company's board of directors.

Elliott's $160-per-share offer represents a preliminary offer that could go higher "with additional, private diligence," the letter said. 

Why It's Important

Athenahealth is a company that "has not worked for many years, is not working today and will not work in the future," the activist investment firm said in the letter. At its core, the company has not made the necessary changes so it can grow at the rate it should, in Elliott's view. 

"The company already seems to be reverting back to long-established patterns of challenged execution and is unwilling to explore strategic alternatives for maximizing value," the letter said. "For shareholders, this means the future at Athenahealth is likely to look a lot like the past."

What's Next

Singer hopes to discuss his proposal with the company's management team and board of directors to explain why the offer represents "a compelling opportunity" for all stakeholders.

"We have made this proposal in part because we strongly believe that going private gives Athenahealth the best chance to thrive as a disruptor in the healthcare technology market," the letter said. 

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