Internet Brands — which is the company that owns FlyerTalk and other Internet web sites — has entered into a definitive agreement to acquire WebMD Health Corporation in a transaction valued at approximately $2.8 billion.
What Do FlyerTalk and WebMD Have In Common? As of Today, The Answer Is…
“Under the terms of the agreement, a subsidiary of Internet Brands will commence a tender offer in the next 10 business days to acquire all of the issued and outstanding shares of WebMD common stock for $66.50 per share to be paid in cash upon completion of the transaction”, according to this official announcement which was released earlier today. “This valuation represents a premium of approximately 30 percent to WebMD’s share price on February 15, 2017, the day before WebMD announced that it was commencing a process to explore and evaluate potential strategic alternatives, as well as a premium of approximately 20 percent over WebMD’s closing share price on July 21, 2017. The financing for the transaction is fully committed. The WebMD Board of Directors approved the merger agreement. The acquisition is expected to close during the fourth quarter of 2017, subject to the satisfaction of customary closing conditions.”
WebMD was founded and launched in 1996 before becoming a public company in 2005.
Fodor’s was acquired by Internet Brands last year and became part of the consumer Home and Travel group of Internet Brands. Terms of the transaction were not publicly released.
Kohlberg Kravis Roberts — also known as KKR, a global investment firm — acquired Internet Brands from Hellman & Friedman LLC and JMI Equity in a deal worth $1.1 billion, according to this article I wrote on Tuesday, June 3, 2014. In September of 2010, Internet Brands had been acquired by an affiliate of private equity investment firm Hellman & Friedman Capital Partners VI in a deal said to be worth approximately $640 million.
The Gate had resided at FlyerTalk twice — once when founder Randy Petersen owned FlyerTalk; and once during the ownership of FlyerTalk under Internet Brands.
Summary
The acquisition of WebMD further bolsters the portfolio of companies under the health vertical of Internet Brands, which has been diversifying its portfolio — meaning that FlyerTalk and Fodor’s are merely small entities of an increasingly growing company — and do not be surprised if more acquisitions in the travel space by Internet Brands are announced in the future…
Source: WebMD.
