One year after launching a campaign urging Athenahealth Inc. (ATHN) - Get athenahealth, Inc. Report to consider "strategic options," $35 billion activist investor Elliott Management on Monday launched a hostile bid to buy the healthcare technology company for as much as $6.9 billion including debt, in an all-cash offer.
Athenahealth shares rose 16%, or $19.93 cents to $146.02.
The bid, for $160 a share, may be the latest example of Elliott Management shifting from its bread-and-butter activist activists into the world of private equity, following its move recently to set up a Menlo Park, Calif.-based private equity team, Evergreen Coast Capital Partners.
The activist investor has had a great deal of success over the years driving companies to sell themselves or take other M&A actions. In many cases, activists will make hostile bids in the hopes of encouraging other friendly bidders, often known as White Knights, into making bids and striking deals at a premium. For example, Elliott made a bid to buy Lifelock in 2016, after acquiring an 8.4% stake, and it later sold to Symantec.
Editor's note: A complete version of this was published by The Deal, a sister publication of TheStreet that offers sophisticated insight and analysis on all types of deals. Click here for a free trial.