Emdeon Shares Popped: What You Need to Know


Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Emdeon (NYS: EM) popped 14% in intraday trading after Blackstone Group (NYS: BX) announced it will acquire a controlling interest in the company to take it private.

So what: Private-equity investor Blackstone Group has agreed to buy Emdeon for $19 per share in cash. Emdeon's board unanimously approved the deal, worth about $3 billion, and is recommending stockholders do so as well.

Now what: General Atlantic and Hellman & Friedman, which own about 70% of shares outstanding, have agreed to vote in favor of the agreement. The deal is subject to the usual closing conditions, which include shareholder approval by Emdeon's stockholders and Hart-Scott-Rodino Act clearance. It is expected to close before year-end.

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At the time thisarticle was published Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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