Blackstone to privatize Emdeon with $3B purchase

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Blackstone Capital Partner, an investment and advisory firm, has entered into a definitive merger agreement to acquire a controlling interest in healthcare revenue software developer Emdeon for $3 billion, resulting in the privatization of the Nashville, Tenn.-based Emdeon.

Investment firm Hellman & Friedman will maintain a significant minority equity interest in Emdeon, the health IT company added.

Under the terms of the merger agreement, holders of Emdeon common stock will receive $19 per share in cash. Emdeon's board of directors has unanimously approved the merger agreement and is recommending that Emdeon's stockholders adopt the merger agreement. General Atlantic and Hellman & Friedman have agreed to vote shares owned by them representing, in the aggregate, approximately 70 percent of the company's outstanding shares, in favor of the transaction.

The transaction is subject to customary closing conditions, including approval by Emdeon's stockholders and clearance under the Hart-Scott-Rodino Act, and is currently expected to be completed in the second half of 2011, Emdeon added. Following completion of the transaction, Emdeon will become a privately held company and its Class A common stock will no longer be traded on the New York Stock Exchange.