Elliott Management made an all-cash offer for athenahealth at $160 per share, according to a letter the investment management firm sent to athenahealth's management team May 7.
The proposed deal could be worth roughly $7 billion, including debt, according to CNBC, which reviewed the May 7 letter.
Athenahealth confirmed its board of directors would "carefully review the proposal to determine the course of action that it believes is in the best interest of the company and athenahealth shareholders" in a May 7 statement, characterizing the bid as an "unsolicited acquisition proposal from Elliott Management."
Elliott Management purchased a 9.2 percent stake in athenahealth in May 2017. The investment management firm currently maintains an 8.9 percent stake in the company.
In its May 7 letter,Elliott Management said it had constructive discussions with athenahealth's management, and "greatly appreciate[s] how much time the management team, led by Jonathan [Bush], and the board have invested in evaluating our perspectives as well as the perspectives of our fellow shareholders," according to CNBC.
However,Elliott Management claimed in the letter that athenahealth's management team had "refused to engage" in certain strategies, such as a take-private transaction the investment management firm proposed in the fall.
"Unfortunately, we are faced now with the stark reality that athenahealth as a public-company investment, despite all of its promise, has not worked for many years, is not working today and will not work in the future," the letter states, according to CNBC. "Given athenahealth's potential, this reality is deeply frustrating."