Good news, shareholders! WebMD Health Corporation’s (NASDAQ:$WBMD) stock jumped on July 24 after the New York City-based company disclosed that it is being taken private. As of 11:52 a.m. EDT, the stock price was up more than 19%. Needless to say, if you’re looking for application software shares to invest in, WebMD Health Corporation’s stock might just be your guy!
So, what happened?
Long story short: Internet Brands has agreed to acquire WebMD for $2.8 billion. If you didn’t already know, Internet Brands is a portfolio company of the global investment firm KKR, and the deal values WebMD at $66.50 per share, which represents a 20% premium over Friday’s closing price.
The board of directors for WebMD has approved the transaction, and financing for the deal has been fully committed. If all goes as planned, the acquisition is thought to close in Q4.
“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 Dr. Steven L. Zatz, CEO of WebMD Health Corp.
CEO of Internet Brands Bob Brisco was also excited about the new deal, and gave high praise to the company:
“Since its founding, 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.”
What’s next?
Seeing as the deal has already been given the thumbs up by WebMD’s board and is fully financed, it seems very likely that it will go through without much trouble. Additionally, because shares are trading within $0.50 of the buyout price, it makes sense for shareholders to cash in their chips today. Eventually, shareholders should consider using their proceeds from WebMD Health Corporation’s stock to invest in other promising healthcare businesses.
Featured Image: twitter
