Emdeon, which provides healthcare revenue and payment cycle management and clinical information exchange solutions, announced Thursday a merger agreement with investment firm Blackstone Capital Partners under which Blackstone will acquire a controlling interest in Emdeon. The deal is valued at about $3 billion.

Emdeon will become a private company.  Hellman & Friedman will maintain a significant minority equity interest in Emdeon. Under the terms of the merger agreement, holders of Emdeon common stock will receive $19 per share in cash.  

Emdeon's board of directors unanimously approved the merger agreement and is recommending that Emdeon's stockholders adopt the merger agreement.  General Atlantic and Hellman & Friedman have agreed to vote shares owned by them representing, in the aggregate, approximately 70 percent of the company's outstanding shares, in favor of the transaction.

"This transaction provides for a great return for our investors," said Emdeon CEO George Lazenby. "We are excited about the opportunity to move forward with two excellent investors in Blackstone and Hellman & Friedman.  They each have an in-depth understanding of our business and industry, and will be tremendous partners as we continue to pursue our strategy of making healthcare efficient.  We are looking forward to building upon our leadership position in healthcare information technology and services, made possible by the continued support of our customers and the dedication and commitment of our employees."

Lazenby also highlighted the “tremendous contributions” of global growth investor General Atlantic in the development of Emdeon since becoming the company’s majority owner in 2006.

The transaction is subject to customary closing conditions, including approval by Emdeon's stockholders and clearance under the Hart-Scott-Rodino Act, and is currently expected to be completed in the second half of 2011.  Following completion of the transaction, Emdeon will become a privately held company and its Class A common stock will no longer be traded on the New York Stock Exchange.  

Emdeon executives noted that, with the proposed transaction, they would not host a conference call to discuss financial results for the second quarter of 2011.  They expect  to issue the company’s earnings release and file its quarterly report on Form 10-Q for the quarter ended June 30, 2011, on or about Aug. 8, 2011.