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$2.2b deal will take Emdeon private

By Associated Press
August 5, 2011

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NEW YORK - Emdeon Inc., a health care payment technology company, has agreed to be taken private by Blackstone Group for about $2.2 billion.

The deal would give Blackstone Capital Partners VI LP a controlling interest; Hellman & Friedman will keep a significant minority equity interest.

Emdeon shareholders would receive $19 per share in cash, a 17 percent premium over Wednesday’s closing price.

Emdeon’s stock jumped $2.10, or 12.9 percent, to $18.35.

The Nashville company said in a May regulatory filing that it had 115.8 million shares outstanding. Emdeon and Blackstone value the deal at approximately $3 billion.

New York-based Blackstone manages a portfolio of real estate, hedge funds, private equity, and related businesses. The companies it has helped take private include arts and crafts retailer Michaels Stores.

The Emdeon transaction has been unanimously approved by the company’s board but needs shareholder approval. Heller & Friedman and majority shareholder General Atlantic, which own about 70 percent of Emdeon’s outstanding stock, have agreed to vote for the deal.