One of the largest online health publisher, WebMD Health Corp (NYSE:WBMD) said on Monday that it has agreed to be bought over by private equity firm KKR & Co (NYSE:KKR) in a deal valued at about US$2.8bn.
The deal will see WebMD's websites, such as WebMD.com, Medscape.com and MedicineNet.com, and those owned by KKR unit Internet Brands Inc, which includes DentalPlans.com and AllAboutCounseling.com coming under the private equity.
KKR will pay US$66.50 per share, a 20.5% premium to WebMD's Friday closing price. WebMD's shares were trading at US$66 before the opening bell.
WebMD saw slowdown in advertising paid by pharma companies
WebMD which started in 1996, is one of the most popular health websites for consumers and medical professionals, attracting more than 70 mln monthly unique visitors in 2016, according to an analytics company.
WebMD also owns medical news and education brand Medscape, which accounted for around 60% of its advertising revenue in 2016.
The New York-based company had said in February that it would explore its options, after a slowdown in advertising paid for by pharmaceutical companies.
The deal, approved by the WebMD board, is expected to close in the fourth quarter of 2017.