Thursday, June 18, 2009
HLTH Corp. says it will complete its merger into health Web site operator WebMD Health Corp. in an all-stock deal.
HLTH owns about 80% of WebMd, or 48.1 million shares. Under the deal, each HLTH share will convert into 0.444 shares of WebMD Class A stock. WebMD Class B shares will be retired. HLTH shareholders will own about 80% of the combined company, which will keep the WebMD name.
Martin Wygod, the chairman of WebMD and acting CEO and chairman of HLTH, will be chairman of the new WebMD. WebMD CEO Wayne Gattinella will be president and CEO of the company.
The companies agreed to combine in a $2.31 billion cash and stock deal in February 2008, but canceled the deal in October due to financial market turmoil.