(By Balaseshan) Athenahealth Inc. (NASDAQ: ATHN), which provides ongoing billing, clinical-related and other related services, said it has agreed to buy mobile drug reference tools provider Epocrates Inc. (NASDAQ: EPOC) for about $293 million.
Athenahealth will pay Epocrates $11.75 per share in cash, representing a 22% premium over the Friday's closing price. This is an all-cash offer for all outstanding shares of Epocrates' common stock, and Athenahealth plans to finance this acquisition using available cash and funds available from its existing credit facility.
Epocrates shareholders representing about 17.5% of the outstanding common stock have agreed to vote their shares in favor of the transaction.
With the acquisition of Epocrates, which is used and trusted by more than 330,000 physicians, Athenahealth believes it will be able to better serve an expanded network of providers.
Athenahealth intends to build upon Epocrates' success to date in transforming the way physicians access and engage with clinical information, with each other, and with their patients.
Piper Jaffray & Co. acted as exclusive financial advisor to Epocrates in connection with the transaction. Goodwin Procter LLP served as Athenahealth's legal counsel and Cooley LLP served as counsel to Epocrates.
The closing of the transaction is subject to the approval of Epocrates shareholders and other customary closing conditions and is currently expected to occur early in the second quarter of 2013.
ATHN closed Friday's regular session at $76.35, while EPOC ended at $9.62.