Internet Brands, a KKR portfolio company has agreed to acquire WebMD Health Corp. for approximately $2.8 billion in cash. The WebMD Health Network includes WebMD.com, Medscape.com, MedicineNet.com, eMedicineHealth.com, RxList.com, OnHealth.com, Medscape Education (Medscape.org) and other WebMD owned sites and apps.
Here are five things to know about the deal:
1. As part of the acquisition, Internet Brands will pay $66.50 per WebMD share to be paid in cash upon completion of the transaction. WebMD’s stock jumped 18.68 percent to $65.75 after the acquisition was announced, making its largest intraday gain since April 2014.
2. Internet Brands’ Health vertical serves millions of consumers and more than 50,000 health care practices utilizing a multi-brand, multi-product approach. The company is the leading SaaS / Web Hosting player in the Health space, serving a wide variety of practice areas, including Dental, Chiropractic, Veterinary, Vision Care, and Mental / Physical Therapy.
3. The acquisition brings together WebMD’s websites, such as WebMD.com, Medscape.com and MedicineNet.com, and those owned by KKR unit Internet Brands Inc, including DentalPlans.com, eHealthForum.com, HealthBoards.com, FitDay.com, VeinDirectory.org and AllAboutCounseling.com.
4. The deal, approved by the WebMD board, is expected to close in the fourth quarter of 2017.
5. “WebMD and Medscape are the market leaders in online health with unparalleled reach to consumers and healthcare professionals,” said Bob Brisco, CEO of Internet Brands in a statement. “Since its founding, WebMD has established itself as a trusted resource for health information. We look forward to delivering that resource to even more users, by leveraging our combined resources and presence in online healthcare to catalyze WebMD’s future growth.”