athenahealth, Inc (NASDAQ: ATHN) isn’t moving at all in the market this morning, and for good reason. The stock was halted as news breaks that the company is in the process of exploring strategic alternatives. Today, we’ll talk about:
- The strategic alternative exploration;
- what we’re seeing from the stock as a result;
- and what we’ll be watching for with regard to ATHN ahead.
As mentioned above, athenahealth is halted in the market this morning after the company announced that it is in the process of exploring strategic alternatives. In a press release issued early this morning, the company announced that its Board of Directors has initiated a process to explore strategic alternatives. In the release, ATHN said that the Board will consider a sale, merger or other transaction involving the company as well as continuing as an independent company. It was also announced that Jonathan Bush, President and CEO at ATHN has stepped down. Of course, considering the news, the company has started the process to search for qualified CEO candidates.
In the release, athenahealth said that Jeff Immelt, the company’s Chairman, has been appointed as Executive Chairman. Also, Marc Levine, Executive Vice president, Chief Financial Officer, Chief Accounting Officer and Treasurer has agreed to assume greater day-to-day operational responsibilities and oversight. Finally, Baord member Amy Abernethy, M.D., Ph.D., will be advising the executive leadership team on data strategy. In a statement, Jeff Immelt, Executive Chairman at ATHN, had the following to offer:
On behalf of the Board, I want to thank Jonathan for guiding athenahealth to this point and for building an incredible team, which is deeply focused on our clients and on driving disruptive, positive change across the healthcare industry. The Board and Jonathan agree that this change in leadership is appropriate as athenahealth turns to its next chapter.
The above statement was followed up by Jonathan Bush, departing President and CEO of ATHN. Here’s what he had to offer:
I believe that working for something larger than yourself is the greatest thing a human can do. A family, a cause, a company, a country – these things give shape and purpose to an otherwise mechanical and brief human existence. athenahealth is a near once in a life time example of such a thing. With that lens on, it’s easy for me to see that the very things that made me useful to the Company and cause in these past twenty-one years, are now exactly the things that are in the way. I cannot imagine a single organization more loaded with potential to transform healthcare.
What We’re Seeing From The Stock
With the news that broke this morning, athenahealth investors are waiting for updates. However, as they do, the stock is halted. Considering the reason for the halt, this one isn’t likely to last long. With the strategic alternatives mentioned having more to do with a sale or merger than anything else, this news is likely to lead to excitement and could send the stock on a run for the top once the halt is over. Of course, our partners at Trade Ideas were the first to alert us to the halt.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ATHN. In particular, we’re interested in following the story surrounding the exploration of strategic alternatives and excited to see what the company comes up with. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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