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WebMD, the online information source on health topics, announced Monday it will be acquired by Internet Brands, a new media company controlled by global investment firm Kohlberg Kravis Roberts. The transaction is valued at around $2.8 billion.
According to the company's statement, stockholders of the New York-based health information provider would get $66.50 per each share in cash, a 20 percent premium of the Friday closing price of $55.19.
The sale comes after WebMD announced in February that the management team was working with its legal and financial advisers to explore various strategies to stay competitive. The company was founded in the mid 1990's and quickly became a prominent name in the digital space as one of the leading information providers on medical symptoms, pharmacy, drugs, and physicians.
"These alternatives could include, among other things, the sale of part or all of the company, a merger with another party or other strategic transaction or continuing to execute on WebMD's business plan," read a company statement at the time.
WebMD's stock jumped around 20 percent on the New York Stock Exchange in the first hour of trading after the deal was announced, a sign that investors are as optimistic as the company's management about future prospects after the acquisition.
"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 Zatz, chief executive of WebMD.