athenahealth Initiates Process to Explore Strategic Alternatives, Including Search for New Chief Executive Officer

Mr. Immelt continued, “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.”

Mr. Bush said, “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.”

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.

There can be no assurance that the review being undertaken will result in a merger, sale or other business combination involving the Company.  athenahealth does not intend to make further announcements regarding the review unless and until the Board has approved a specific transaction or other course of action requiring disclosure.

Fiscal Year 2018 Outlook Affirmed
athenahealth is reaffirming 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. Fiscal year 2018 financial guidance is summarized in the following table:

Previous Revenue Standard

For the Fiscal Year Ending December 31, 2018

Forward-Looking Guidance

Financial Measures

GAAP Total Revenue

$1,310 million – $1,380 million

GAAP Operating Income

$108 million – $152 million

GAAP Operating Margin

8% – 11%

Non-GAAP Operating Income

$210 million – $235 million

Non-GAAP Operating Margin

16% – 17%

About Jeff Immelt
Mr. Immelt was appointed Chairman of athenahealth, effective February 7, 2018.  Mr. Immelt is recognized for advancing digitization across industries, particularly healthcare enterprises and the healthcare industry at large.

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