Internet Brands Inc. of El Segundo announced an agreement Monday to acquire online medical information company WebMD for $2.8 billion.
Internet Brands’ private equity owner, KKR, has fully committed to financing the transaction, the company said in a statement.
The deal combines a vast portfolio of popular websites into one company. New York-based WebMD’s network includes websites such as WebMD.com, Medscape.com and MedicineNet.com. Internet Brands’ collection includes CarsDirect, eDoctors and Fodor’s Travel.
Per the agreement, a subsidiary of Internet Brands will offer in the next 10 business days to acquire all of WebMD’s common stock for $66.50 per share in cash, a premium of about 20 percent over the company’s closing share price on Friday. The acquisition is expected to close during the fourth quarter of 2017 and has been approved by WebMD’s board of directors, Internet Brands said.
WebMD announced in February that it was exploring strategic alternatives such as selling itself or merging with another business.