Paul Singer — an activist investor and hedge fund manager — on May 18 purchased a 9.2 percent stake in athenahealth, according to CNBC.
Here are four things to know.
1. Mr. Singer said, "the securities of the company are significantly undervalued and represent an attractive investment opportunity," according to an SEC filing. He also noted there are "numerous operational and strategic opportunities to maximize shareholder value."
2. Mr. Singer runs Elliott Associates, a hedge fund management firm known for "rebooting management and selling companies," according to a separate CNBC report. In the SEC filing, Elliott Associates specifies it is "seeking to engage in a dialogue with the company's board" regarding its ideas.
3. In a statement, an athenahealth representative told CNBC: "We are aware of Elliot's filing and look forward to talking with them to hear their views about the company and discuss the actions we are taking to drive enhanced growth and value creation for all athenahealth shareholders."
4. After Mr. Singer disclosed his investment, athenahealth shares spiked more than 18 percent in trading on May 18.