HLTH Corp. agreed to sell its healthcare data-management business to General Dynamics Information Technology, Fairfax, Va., for $225 million, thus completing one pre-requisite of its merger with WebMD.
The sale is subject to closing conditions but paves the way for Elmwood Park, N.J.-based HLTH to receive stockholder approval to finish its plan to merge with WebMD, first announced in February. Each outstanding share of HLTH common stock will be converted into 0.1979 shares of WebMD stock and $6.89 in cash, subject to adjustments, the company said in a news release. HLTH and WebMD plan to hold stockholder meetings in September to seek approvals.
General Dynamics Information Technology, a wholly owned subsidiary of General Dynamics Corp., Falls Church, Va., will take over HLTHs ViPS segment, which provides data-management, analytics, decision-support and process-automation solutions to government, Blue Cross and Blue Shield and commercial payers.