HLTH Corp. will sell off two businesses and agreed to merge with WebMD Health Corp., the third company it owns.
WebMD will receive $700 million in cash and investments through the merger, HLTH said in a news release. HLTH will reduce its shares in the popular medical advice Web site to 80% from 84% after it merges with WebMD.
Part of that funding will come from the sale of its two other businessesViPS, which provides healthcare analytics, technology and reporting for government agencies and commercial health plans; and Porex, a manufacturer and distributor of porous plastic products used in healthcare, industrial and consumer applications. Both finished the fourth quarter of 2007 with increased revenue. HLTH said it has received interest from potential buyers for them.
The merger is subject to Securities and Exchange Commission requirements, and the companies must receive shareholder approval, and complete the sale of either ViPS or Porex and HLTH's investment in a portfolio of auction-rate securities to finalize the deal. HLTH said it expects to be finished by the third quarter of 2008.
WebMD will continue to operate under its current management team. Kevin Cameron, HLTH's chief executive officer, currently is on medical leave, and Martin Wygod, HLTH board chairman, is acting as CEO, according to an SEC document filed Feb. 13.
Elmwood Park, N.J.-based HLTH earlier this month sold the rest of its shares in Emdeon Business Services. Last year the company went through a name change when General Atlantic bought a controlling share in Emdeon.