New York (HedgeCo.net) – Emdeon Inc is to become to become a privately held company after entering into a definitive merger agreement with hedge fund Blackstone Capital Partners VI L.P. Blackstone will acquire a controlling interest in Emdeon in a transaction valued at approximately $3 billion.

“We are thrilled to be investing in such a high quality company,” said Neil P. Simpkins, senior managing director of Blackstone. “Blackstone looks forward to supporting Emdeon and its experienced management team, in continuing to provide innovative products and services to the healthcare industry.”

The transaction is 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.

Morgan Stanley acted as lead financial advisor and UBS Investment Bank acted as co-financial advisor to Emdeon’s Board of Directors.