Athenahealth sale ‘possible’ with activist investor taking 9.2% stake

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Activist hedge fund manager Paul Singer of Elliott Management disclosed its 9.2 percent stake in Watertown, Massachusetts-based Athenahealth, sending the company’s stock price soaring.

While Elliott’s federal filing said it feels Athena is “significant undervalued,” according to Boston Business Journal, the ultimate goal may be to cost cuts or force a sale of the health IT company, as it has done in the past.

“While a sale of the company is possible, we note Elliott has pursued other paths to value in the past, and we believe the fund may push for a cost reduction program, given Athena’s revenue slow-down and high operating costs,” Leerink analysts said in a report.

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