Internet Brands will buy WebMD for $2.8 billion. The news comes to confirm the Reuters report earlier this year, stating that the owner companies were in talks for the transaction.
WebMD Health Corp. announced today, July 24, that it has entered into a definite agreement with Internet Brands for the latter to acquire WebMD in a transaction valued at $2.8 billion.
The acquisition is made at $66.5 per share and will be honored in cash.
Martin J. Wygod, Chairman of WebMD confirmed the news with a statement, adding that after “diligent analysis and thoughtful deliberations”, the company’s financial advisors have concluded that “this transaction maximizes value for our stockholders.”
As for the users’ benefits, the company’s CEO Steven L. Zatz promised “additional flexibility and resources.”
“We look forward to delivering that resource to even more users, by leveraging our combined resources and presence in online healthcare to catalyze [the platform’s] future growth”, stated Internet Brands CEO Bob Brisco.
Internet Brands, owned by KKR, serves millions of customers through a consumer-focused approach of its online content, products and communities. It is the leading SaaS / Web Hosting provider in the health sector.
Web MD is the most popular online provider of health information, a source for both health specialists and unspecialized readers. Currently, 50,000 health care practices are using its services and paying for its products.
The acquisition consolidates the position of WebMD in the health space, where competition has been heated for a while. In 2016, Google has started to insert health information into its search app, MediciNet and Everyday Health.
Talks for the acquisition of website have started in January of this year. According to Reuters, the estimated price at that time was $2.1 billion. While the share price was ascending, it was still 10% lower than the same time the year before.
Prior to January, WebMD had asked 100 bids from several unnamed companies, in second half of 2016.