Emdeon in February began considering selling off both its business services unit, which provides billing services for US healthcare payers and providers, and medical practice software division. In August, it unloaded its practice division for $567m to UK accountancy software firm Sage Group Plc.
Under the latest deal, General Atlantic will finance the cash transaction with $320m in equity and $925m in bank debt. Emdeon will retain ownership of ViPS Inc, the business services division’s public health subsidiary, according to a company statement. The deal values Emdeon’s remaining 48% stake of the business services division at $300m, the company said.
Emdeon plans to use the cash from the deal to finance a buyback of as many as 100 million shares, slightly more than a third of its outstanding stock, at $12.25 a pop.
