This economy seems to be unhealthy for just about everyone these days, including the health care vertical. It was current economic conditions that led HLTH Corp. (HLTH) and WebMD Health Corp. (WBMD), its 84-percent owned subsidiary, to pull the curtain on their planned merger deal.
The boards of both entities determined that both HLTH, as controlling stockholder of WebMD, and the public stockholders of WebMD, would benefit from WebMD continuing as a publicly traded subsidiary with a strong balance sheet, including approximately $340 million in cash and investments and no long-term debt.
"The Boards of Directors of HLTH and WebMD believe that, in the current economic environment, it is important for a growth company like WebMD not to be encumbered by $650 million in long-term debt that would be coming due in 18 to 36 months,” Martin J. Wygod, chairman of the board of HLTH and of WebMD, commented. “By terminating their merger, HLTH and WebMD will retain financial flexibility and be in an advantageous position to pursue potential acquisition opportunities expected to be available to companies with significant cash resources in this period of financial market uncertainty."
WebMD is the leading provider of health information services, serving consumers, physicians, health care professionals, employers and health plans through its public and private online portals and health-focused publications. HLTH also owns Porex, a developer, manufacturer and distributor of proprietary porous plastic products and components used in health care, industrial and consumer applications.
