Elliot said Athena has missed out in terms of outlook goals, product execution and creation of shareholder value. The fund also pointed out the lack of stability in the company’s leadership team. Athenahealth, which is led by Jonathan Bush, brought in former GE chief Jeff Immelt to take up the role of Chairman earlier this year, as part of a plan to separate the roles of CEO and Chairman.
Last year, Athena had rejected Elliot’s suggestion of going private. This time, however, Athena confirmed that it received an offer from Elliot and said its board would review it. The company has sought the advice of investment bank Lazard Ltd. and law firm Weil, Gotshal & Manges LLP.
Some analysts believe the offer price is low, given Athena’s margins and revenue profile while others feel the offer is good enough to provide value to shareholders.