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
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Emdeon completes Practice Services sale to Sage, September 15, 2006
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Emdeon revises guidance upward for Q2, June 30, 2006
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