The company is fighting a growing pressure from takeover bid – with a cash offer of $160 per share from Paul Singer's activist hedge fund Elliott Management. Elliott, which owns some 9% of athenahealth’s stock sent the offer in early May and in mid-May Janus Henderson Group flexed its nearly 12% share of the company’s stock by saying that a formal sale process is in the best interest of shareholders.
Last month, he acknowledged that he had violently assaulted his former wife—disturbing episodes from a 2006 custody battle. In addition, he is facing several sexual misconduct allegations from some of athenahealth’s female employees.
However, the company has initiated a process to explore strategic alternatives. This review might result in a merger, a sale involving the Company or remaining independent, though there’s no assurance from the board yet on any such matter.
No interim CEO has been named and the Board has initiated a search process to identify qualified CEO candidates. CFO Marc Levine, 44, will “assume greater day-to-day operational responsibilities,” according to the company’s announcement.
Board Chairman Jeff Immelt, 62, who is a former GE Chair and CEO, has been appointed Executive Chairman. Dr. Amy Abernethy, 48, will be advising the executive leadership team on data strategy within her capacity as a board member.
Date: June 8, 2018