Healtheon Corp., based in Palo Alto, Calif., last week announced plans to acquire Atlanta-based ActaMed Corp. in a $150 million transaction.
The two healthcare information systems companies will consolidate their stock. The full-asset merger, which must receive antitrust clearance, is expected to be completed by May.
The new company will adopt the Healtheon name, but a joint board, whose size has yet to be determined, will have representatives from both companies.
Merger talks began this past fall after each company realized its goals led to projects in which the other already had developed leadership, said Debra Jones, spokeswoman for Healtheon. "The quickest and most effective way to reach their goals was by merging."
Both companies provide Internet-related products and network solutions that link healthcare delivery systems with data such as claims, eligibility and clinical information. Healtheon, founded in 1996, focuses on insurance companies and payers. ActaMed, founded in 1992, concentrates on providers.