Cantor sees ‘many reasons’ for UnitedHealth acquiring Athenahealth

Numerous media sources yesterday cited a Dealreporter story indicating that UnitedHealth (UNH) is now in the second round of bidding for Athenahealth (ATHN), Cantor Fitzgerald analyst Steven Halper tells investors in a research note partially titled “It’s Crazy but Not So Crazy.” There are “many reasons” why UnitedHealth’s Optum would benefit from the acquisition of Athenahealth, the analyst contends. He points out that Optum has a large presence in the Boston area and that Athenahealth is located principally in Watertown, Massachusetts. Further, UnitedHealth “can certainly afford” the deal given its strong balance sheet and cash flow, Halper adds. With or without the deal, the analyst expects UnitedHealth will deploy capital and grow its various Optum businesses over time. He reiterates an Overweight rating on the shares with a $300 price target.

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