Blackstone Pays $3B For Healthcare Company Emdeon

Aug 5 2011 | 9:05am ET

Hedge fund giant Blackstone will acquire a controlling interest in Emdeon, a provider of healthcare technology solutions.

Blackstone Capital Partners VI will pay about $3 billion in the deal, which will result in Emdeon becoming a private company with Hellman & Friedman retaining a significant minority stake.

Holders of Emdeon common stock will receive $19.00 per share in cash. The transaction has been unanimously approved by Emdeon’s board of directors. General Atlantic, (Emdeon’s majority owner since 2006) and Hellman & Friedman have agreed to vote in favor of the transaction. Together, they account for about 70% of the company’s outstanding shares.

"This transaction provides for a great return for our investors," said George Lazenby, chief executive officer for Emdeon, in a statement. "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. 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."

The transaction is subject to customary closing conditions and is expected to be completed in the second half of 2011, following which, Emdeon will become a privately held company and its Class A common stock will no longer be traded on the New York Stock Exchange. 

Blackstone has secured committed financing from Banc of America Merrill Lynch, Barclays Capital and Citigroup.  These funds, in addition to equity financing from Blackstone, will finance the cash consideration to be paid to Emdeon's stockholders.

Emdeon is a leading provider of revenue and payment cycle management solutions, connecting payers, providers and patients in the U.S. healthcare system.  


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