Healthcare services and information technology developer Emdeon said it has entered into an agreement to sell a 52% interest in its Emdeon Business Services segment to General Atlantic, a private equity firm, in a transaction that values the business at $1.5 billion.
The Elmwood, NJ-based firm said that it expects to receive approximately $1.2 billion in cash and to retain a 48% interest in Emdeon Business Services, valued at approximately $300 million. The acquisition will be financed with approximately $925 million in bank debt and an investment of approximately $320 million by General Atlantic, according to Emdeon.
In related news, the company said it intends to start a tender offer within approximately two weeks to purchase up to 100 million shares of its common stock at a price per share of $12.25, to be funded out of the proceeds of the Emdeon Business Services transaction. The number of shares proposed to be purchased in the tender offer represents approximately 36% of Emdeon's currently outstanding common shares.
In other news, Andrew Corbin, the firm's chief financial officer, will be leaving Emdeon after the filing of its third-quarter Form 10-Q in November. Corbin will be joining Sage Software of Irvine, CA, as CEO of its Healthcare Division. Earlier this month, Sage completed its acquisition of Emdeon's Tampa, FL-based Emdeon Practice Services business for $565 million in cash.
By AuntMinnie.com staff writers
September 26, 2006
Related Reading
Emdeon completes Practice Services sale to Sage, September 15, 2006
Emdeon sells Practice Services unit to Sage, August 9, 2006
Emdeon posts strong Q2, August 9, 2006
Emdeon delays strategic alternatives process, July 27, 2006
Emdeon revises guidance upward for Q2, June 30, 2006
Copyright © 2006 AuntMinnie.com
