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.  


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.