Health information corporation HLTH Corp. has announced it will merge into its subsidiary WebMD Health Corp. in a deal valued at $2.31 billion.
Upon completion of the merger, HLTH shareholders will own about 80 percent of WebMD, based on the shares currently outstanding at HLTH and WebMD.
The transaction is expected to close in the second or third quarter of 2008.
WebMD's senior management team is expected to continue to lead the organization under president and CEO Wayne Gattinella.
Meanwhile WebMD Health Corp. posted 2007 results stating earnings of $48.3 million, or 81 cents per share, compared with $6.0 million, or 10 cents per share, a year ago.
The company, which provides health information through its Web site, said profit soared in the fourth quarter on a hefty tax gain and strong demand for online services.
WebMD's revenue for the fourth quarter and full year excluded about $1 million and $4 million, respectively, related to its offline professional medical reference and textbook publication business, which was sold on Dec. 31.
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