WebMD and HLTH Plan Merger
The current majority shareholder of WebMD Health Corporation is HLTH Corporation; HLTH owns 84 percent. HLTH recently announced their plans to merge into WebMD. The total deal is valued around $2.13 billion. The plan was posted on the HLTH website.
After the merger is completed, the surviving company will be WebMD. The existing executive and management staff will stay on. There are significant financial advantages for both companies in completion of this deal. Shareholder approval from both companies is still required.
This move entails a divestment of the HLTH holdings. In another similar move, HLTH sold its stake in Emdeon Business Services, of which HLTH had almost 50 percent interest. As well, HLTH announced interest in selling two of its businesses, Porex plastics manufacturing and ViPS payer software.
February 28, 2008 Related topics: Mergers & Acquisitions