Popular health information website WebMD is being acquired by private equity giant KKR in a $2.8 billion cash deal.
KKR’s Internet Brands, a new media company that owns websites including FitDay and CarsDirect, is paying $66.50 per WebMD share–a 20 per cent increase to the company’s closing price this past Friday.
The deal will bring together other Internet Brands run sites and WebMD Health Network websites including WebMD.com, Medscape.com and MedicineNet.com.
“We believe that this transaction will provide additional flexibility and resources to deliver increased value to consumers, healthcare professionals, employers, and health plan participants,” said WebMD CEO Steven L. Zatz in a press release.
Since its founding in 1996, WebMD has become a go-to resource to check medical symptoms and learn what they could mean. Today, the health website attracts over 70 million unique visitors each month; 44 per cent more traffic than its largest competitor site. The New York company went public in 2005.
“WebMD has established itself as a trusted resource for health information. We look forward to delivering that resource to even more users, by leveraging our combined resources and presence in online healthcare to catalyze WebMD’s future growth,” said Internet Brands CEO Bob Brisco.
Already with the approval of WebMD’s board, KKR’s acquisition is expected to close in the fourth quarter of 2017.