The mannequin of Bain Capital is displayed on the display all by way of a information convention in Tokyo, Japan October 5, 2017. REUTERS/Kim Kyung-Hoon

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Nov 22 (Reuters) – Private-equity corporations Hellman & Friedman LLC and Bain Capital on Monday agreed To buy Athenahealth for $17 billion, The latest signal of rising curiosity in corporations powering the healthcare sector’s shift to the cloud.

Privately held Athenahealth provides Computer software Which will assist arrange affected person visits, doc affected person data and simplify funds. It competes with the likes of Cerner Corp (CERN.O).

Companies offering cloud-based mostly options to the healthcare sector have loved A requirement surge Through the COVID-19 pandemic as house-sure people flip to The internet For his or her medical wants.

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The progress has sparked a quantity of provides Inside the sector, collectively with Microsoft Corp’s (MSFT.O) $16 billion buyout of Nuance Communications Inc (NUAN.O) in April. study extra

The healthcare enterprise has additionally seen An enhance in dealmaking by private-equity corporations, which have joined palms this yr To accumulate corporations for large sums.

Blackstone (BX.N), Carlyle Group (CG.O) and Hellman & Friedman collectively agreed To buy medical current and gear agency Medline Industries Inc in June for $34 billion, collectively with debt. nL4N2M536I]

Athenahealth was taken private in 2019 by Evergreen Coast Capital, hedge fund Elliott’s private equity arm, and funding agency Veritas in a $5.7 billion deal.

It later merged with Virence Well being, a healthcare Computer software supplier Veritas purchased from Widespstudy Electrical Co (GE.N).

“Following our take-private and combination with Virence in 2019, Athenahealth delivered unequalled worth to its clients by signalificantly growing R&D funding,” said Ramzi Musallam, CEO of Veritas Capital.

Veritas and Evergreen will retain a minority stake in Athenahealth, Which May even be partially owned by completely different buyers Similar to Singapore sovereign wealth fund GIC.

The deal Is predicted To close Inside The primary quarter of 2022 and Bob Segert will proceed As a Outcome of the very biggest boss of Athenahealth.

Evercore and Goldman Sachs & Co have been the lead monetary advisors to Athenahealth and Veritas Capital.

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Reporting by Amruta Khandekar; Modifying by Shailesh Kuber and Aditya Soni

Our Requirements: The Thomson Reuters Notion Guidelines.

Source: https://www.reuters.com/article/marketsNews/idUSL4N2SD2L7?il=0