Late last week, Emdeon Inc. (NYSE: EM) shares climbed13.5% to $18.44 after the healthcare information-technology provider agreed to be bought by private-equity firm Blackstone Group. Opening the week today, Emdeon share prices have relented slightly, still hovering over the $17.00 mark.
A news release published early August 4 said the Nashville-based Emdeon, a leading provider of healthcare revenue and payment cycle management and clinical information exchange solutions, had entered into a definitive merger agreement with Blackstone, under which this Blackstone fund will acquire a controlling interest in Emdeon in a transaction valued at approximately $3 billion that will result in Emdeon becoming a private company. Hellman Friedman will maintain a significant minority equity interest in Emdeon.
Under the terms of the merger agreement, holders of Emdeon common stock will receive $19.00 per share in cash. Emdeon’s Board of Directors has unanimously approved the merger agreement and is recommending that Emdeon’s stockholders adopt the merger agreement.
Emdeon CEO George Lazenby was quoted in the release as saying, “This transaction provides for a great return for our investors. We are excited about the opportunity to move forward with two excellent investors in Blackstone and Hellman Friedman. They each have an in-depth understanding of our business and industry, and will be tremendous partners as we continue to pursue our strategy of making healthcare efficient.
Lazenby concluded, “We are looking forward to building upon our leadership position in healthcare information technology and services, made possible by the continued support of our customers and the dedication and commitment of our employees.”
Emdeon is a leading provider of revenue and payment cycle management solutions, connecting payers, providers and patients in the U.S.healthcare system. Emdeon’s product and service offerings integrate and automate key business and administrative functions of its payer and provider customers throughout the patient encounter.