KKR to buy WebMD for $2.8 bn, bring slew of health sites under one umbrella
Private equity firm KKR & Co has agreed to buy WebMD Health Corp in a deal valued at about $2.8 billion, bringing a slew of popular online health information websites under one umbrella. KKR will pay $66.50 per share, a premium of 20.5 percent to WebMD's Friday closing price. WebMD's shares were trading at $66 before the opening bell.
The deal comes five months after New York-based WebMD said it would explore strategic options amid a slowdown in advertising paid for by pharmaceutical companies. KKR will fold WebMD's websites, including WebMD - Better information. Better health.and Latest Medical News, Clinical Trials, Guidelines, into its Internet Brands unit, which houses sites such as Dental Insurance & Savings Plans for Individuals & Familiesand Counseling Services - Marriage, Family, Substance Abuse Counselors. Founded in 1996, WebMD has grown into one of the most popular health websites for consumers and medical professionals, attracting more than 70 million monthly unique visitors in 2016, according to analytics company comScore Inc. WebMD's Medscape, a medical news and education website, accounted for about 60 percent of the company's advertising revenue in 2016. Internet Brands, which launched as Cars for Sale - Buy a New or Used Car Online - CarsDirect in 1998, licenses and delivers its content and internet technology products and services to small and medium-sized businesses. READ MORE
ARTICLE SOURCE – BUSINESS STANDARD