Arrow-right Camera

The Spokesman-Review Newspaper The Spokesman-Review

Friday, December 13, 2019  Spokane, Washington  Est. May 19, 1883
Cloudy 36° Cloudy
News >  Business

WebMD agrees to be bought by buyout firm KKR for $2.8 billion

By Leslie Patton Bloomberg

WebMD Health Corp. agreed to sell itself to buyout firm KKR & Co. in a deal valued at about $2.8 billion.

WebMD stockholders will receive $66.50 a share in cash, according to a statement Monday. The price is 20 percent above Friday’s closing level and 29 percent above where the stock traded in mid-February, when the online health-care information company announced that it was considering a sale.

The sale comes after a previous attempt to find a buyer, in 2012, fell apart. WebMD, which is used by 75 million consumers each month, said in February it hired JPMorgan Chase to review strategic alternatives.

In March, activist investor Blue Harbour Group raised its stake in WebMD to 8.99 percent and disclosed talks with the company. The group’s founder and chief executive officer, Cliff Robbins, has said WebMD was likely to appeal to multiple buyers because it was underpriced and will be worth more within three years.

KKR already owns health-care companies including Air Medical Group Holdings and Arbor Pharmaceuticals, among others.

Subscribe to the Morning Review newsletter

Get the day’s top headlines delivered to your inbox every morning by subscribing to our newsletter.

You have been successfully subscribed!
There was a problem subscribing you to the newsletter. Double check your email and try again, or email webteam@spokesman.com