Medical information content vendor WebMD Health Corp. and its corporate parent HLTH Corp. have resurrected an effort to merge, with WebMD the surviving company.
Under the new agreement, New York-based WebMD would acquire the stock of Elmwood Park, N.J.-based HLTH for approximately $1.2 billion. That's far below the $2.13 billion value of a merger agreement announced in February 2008 that fell apart last October as the financial crisis deepened.
The companies say the merger would eliminate inefficiencies associated with having two publicly traded companies. HLTH, which previously divested the Emdeon Business Services claims clearinghouse and ViPS payer software firm, owns 80% of WebMD. HLTH, for a considerable time period, has been trying to sell its Porex plastics manufacturing firm.
Upon closing of the new merger agreement, Martin Wygod, chair of HLTH and WebMD, would become chair of the combined company. Wayne Gattinella, president and CEO of WebMD, would retain those titles in the combined company. The deal is expected to close during the third or fourth quarters.
More information is available at webmd.com and hlth.com.
--Joseph Goedert
JUN 22, 2009 12:24pm ET
WebMD, HLTH Again Try to Merge
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