Athenahealth To Explore Strategic Alternatives; CEO Jonathan Bush Steps Down

(RTTNews) - athenahealth Inc. (ATHN), a provider of network-enabled services for hospital and ambulatory customers nationwide, said that its board has initiated a process to explore strategic alternatives. As part of the process, the Board will consider a sale, merger or other transaction involving the Company as well as continuing as an independent company.

In addition, the company announced that Jonathan Bush has stepped down as President, Chief Executive Officer and as a member of the athenahealth Board, effective immediately. The athenahealth Board has initiated a search process to identify qualified Chief Executive candidates.

Jeff Immelt, Chairman of athenahealth, has been appointed Executive Chairman, Marc Levine, Executive Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer, will assume greater day-to-day operational responsibilities and oversight, and current Board member Amy Abernethy will be advising the Executive Leadership Team on data strategy within her role as a director.

Lazard and Centerview Partners are acting as the Company's financial advisors, and Weil, Gotshal & Manges LLP is legal counsel to the Company. A leading executive search firm has been retained to assist with the CEO search process.

athenahealth reaffirmed its fiscal year 2018 financial guidance which was communicated on February 15, 2018 at its 2018 Investor Summit. Fiscal year 2018 guidance is prior to the impact of the new revenue recognition standard to allow for comparability against historical results.

For fiscal year 2018, the company still expects GAAP Operating Income to be in the range of $108 million - $152 million, and total revenue of $1.310 billion - $1.380 billion.