The symbol of Bain Funds is exhibited on the monitor during a news meeting in Tokyo, Japan Oct 5, 2017. REUTERS/Kim Kyung-Hoon

Nov 22 (Reuters) – Non-public-equity companies Hellman & Friedman LLC and Bain Capital on Monday agreed to acquire Athenahealth for $17 billion, the most up-to-date sign of increasing desire in companies powering the healthcare sector’s shift to the cloud.

Privately held Athenahealth presents software package that can assist manage client visits, doc affected person data and simplify payments. It competes with the likes of Cerner Corp (CERN.O).

Businesses furnishing cloud-based solutions to the health care sector have savored a demand from customers surge for the duration of the COVID-19 pandemic as property-bound folks flip to the web for their health care requirements.

The boom has sparked many deals in the sector, which include Microsoft Corp’s (MSFT.O) $16 billion buyout of Nuance Communications Inc (NUAN.O) in April. read much more

The health care marketplace has also noticed a rise in dealmaking by non-public-fairness firms, which have joined hands this year to get companies for enormous sums.

Blackstone (BX.N), Carlyle Team (CG.O) and Hellman & Friedman with each other agreed to obtain professional medical source and equipment firm Medline Industries Inc in June for $34 billion, together with credit card debt. nL4N2M536I]

Athenahealth was taken personal in 2019 by Evergreen Coast Capital, hedge fund Elliott’s personal equity arm, and expense firm Veritas in a $5.7 billion offer.

It later merged with Virence Health and fitness, a health care software program service provider Veritas acquired from Normal Electric powered Co (GE.N).

“Pursuing our consider-personal and mix with Virence in 2019, Athenahealth delivered unmatched value to its clients by substantially expanding R&D financial commitment,” explained Ramzi Musallam, CEO of Veritas Money.

Veritas and Evergreen will retain a minority stake in Athenahealth, which will also be partly owned by other traders these kinds of as Singapore sovereign prosperity fund GIC.

The offer is anticipated to close in the initial quarter of 2022 and Bob Segert will continue as the best boss of Athenahealth.

Evercore and Goldman Sachs & Co…