Healtheon Corp. merges with Web MD

BANGALORE: Healtheon India, a wholly-owned subsidiary of healthcare innovator, Healtheon Corporation, located in Santa Clara, US, has announced the merger of Healtheon Corporation with Web MD.

The Healtheon Corporation vice-president Marco Cupidi said the successful completion of the merger would enable the reduction of an estimated $250 billion in administrative waste in the healthcare market in the US alone, while improving the quality of healthcare.

As a result of the merger, Web MD stockholders will receive 1.79 shares of Healtheon/Web MD common stock for each share of outstanding Web MD common stock. MEDE America stockholders will receive 0.74 shares of Healtheon/Web MD common stock in exchange for each share of MEDE America common stock. Medcast stockholders will receive approximately $2.3 million in cash and 2.6 million shares of Healtheon/Web MD common stock. Healtheon will issue approximately 75 million shares in connection with the merger and will assume approximately 51 million options and warrants of the merged companies.

The combined company brings together the Internet-based information and transaction platform of Healtheon, the brand awareness, marketing strategy and strategic relationships of Web MD, connectivity to more than 650 players of MEDE America and the daily medical news content of Medcast. Healtheon/Web MD actively deploys services to 2,80 lakh physicians, 11,000 dentists, 1,100 hospitals, 46,000 pharmacies and has over five lakh consumers enrolled in one of the company's support communities. The Managing Director of Healtheon Software India Private Ltd, Mr. Shankar Srinivasan, said the combination of Healtheon, Web MD, MEDE America and Medcast creates a clearly differentiated leadership position. The new company's' combined Web site is proposed to be launched soon.