Private-equity firm KKR (NYSE: KKR) on Monday announced plans to acquire WebMD Health (NASDAQ: WBMD), a U.S. online health publisher, in an all-cash deal valued at about $2.8 billion.
WebMD shareholders will receive $66.50 per share in cash upon completion of the transaction. That represents a premium of approximately 30 percent to WebMD's share price on February 15, 2017, the day before WebMD announced that it was commencing a process to explore and evaluate potential strategic alternatives, as well as a premium of approximately 20 percent over WebMD's closing share price on July 21, 2017.
WebMD's board of directors has approved the transaction, which is expected to close during the fourth quarter of 2017.
Reuters reported on Sunday that KKR was nearing a deal to buy WebMD.
The deal brings under one roof WebMD's websites, such as WebMD.com, Medscape.com and MedicineNet.com, with those owned by another KKR company, Internet Brands, including DentalPlans.com, VeinDirectory.org and AllAboutCounseling.com.
Prior to the acquisition WebMD ran a five-month auction and solicited bids from more than 100 companies and private-equity firms, Reuters reported.
A deal would make WebMD the latest health-care media company to be sold. In December, j2 Global's digital media arm Ziff Davis acquired Everyday Health, a U.S. operator of health-related websites, for $465 million, including debt.
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.
WebMD also owns medical news and education brand Medscape, which accounted for around 60 percent of its advertising revenue in 2016.
The New York-based company said in February it would explore its options, after a slowdown in advertising paid for by pharmaceutical companies. Activist hedge funds Blue Harbor Group
and Jana Partners subsequently disclosed stakes in WebMD.
Internet Brands, which launched as CarsDirect.com in 1998, licenses and delivers its content and internet technology products and services to small and medium-sized businesses. It
was acquired by KKR in 2014 for $1.1 billion from two other private equity firms, Hellman & Friedman and JMI Equity.
Under KKR, the company has expanded its portfolio of brands to include Demandforce and Fodor's Travel.
—Reuters contributed to this report.
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