Elliott, Veritas snag Athenahealth for $5.5B

Private equity firm Veritas Capital and hedge fund Elliott Management have agreed to acquire US healthcare software maker Athenahealth for $5.5 billion in cash, informed sources said on Sunday.

Athenahealth, whose cloud-based service is used to track revenue from patients, physicians and hospitals, had been under pressure to sell itself from Elliott, which has about a 9 percent stake in the company.

As part of a restructuring effort this year, it has cut jobs and hired former General Electric Chief Executive Jeff Immelt as chairman.

The acquisition, which values Athenahealth at around $135 per share, could be announced as soon as Monday, the sources said, asking not to be identified ahead of any official statement.

Athenahealth, Elliott and Veritas Capital did not immediately re- spond to requests for comment.

As reported by The Post, the medical-record software company recently reached out to suitors it previously rejected as strong bids failed to materialize.

In June, Elliott Management, run by Paul Singer, forced out Athena founder and Chief Executive Jonathan Bush, cousin of former President George W. Bush, amid media reports that Bush’s ex-wife had ac- cused him of domestic abuse.

Singer, who in the spring said Elliott would pay $160 a share for the company, or about $7 billion, had since backed off that bid.

Last week the company reported a third-quater profit of $1.08 per share, beating estimates of 98 cents.

Shares declined 3.6 percent Friday, closing at $120.35. They are off 9.5 percent year to date.