Elliott Management Makes Unsolicited Bid to Take Athenahealth Private

Athenahealth shares saw big gains on Monday after it was revealed that hedge fund Elliott Management, has proposed an unsolicited bid for the company for $160 a share.

The all cash offer values Athenahealth at $6.9 billion including debt.

Compared to this past Friday’s closing price, the offer is roughly a 27% premium.

According to Elliott Management, the company has had “extensive private engagement” with Athenahealth’s management and board during the past year. It believes that Athena cannot make the changes it needs while it remains a public company.

Athena confirmed the unsolicited bid and said it would review it.

Elliott Management has said, “Unfortunately, we are faced now with the stark reality that athenahealth as a public-company investment, despite all of its promise, has not worked for many years, is not working today and will not work in the future.”

Disclaimer: We have no position in athenahealth, Inc. (NASDAQ: ATHN) and have not been compensated for this article.