Athenahealth Explores Strategic Alternatives As CEO Steps Down

Amid a storm of sexual misconduct allegations against its top executive and a takeover attempt by Elliott Management Corp., Athenahealth, Inc ATHN announced Wednesday the immediate resignation of Jonathan Bush as president and CEO and the exploration of strategic alternatives, including a potential sale or merger.

The board also appointed Jeff Immelt, former CEO of General Electric Company GE, as executive chairman.

Why It’s Important

Athenahealth investors rode waves of volatility this year, with the stock fluctuating between $115 and $153. The latest management changes help rid the company of a PR sore spot and, as the board says, position Athenahealth to capitalize on its healthcare tech platform.

What’s Next

Athenahealth has begun a search process to select a new CEO, and it confirmed no announcements will be made regarding a merger unless the board has approved a transaction.

According to Elliott, the firm has received interest from other potential buyers.

The stock was halted in Wednesday's pre-market session. Shares re-opened at 9:50 a.m. ET, trading higher by 6 percent at $160.33 at time of publication.

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