HLTH, WebMD close $1.2 billion merger deal

HLTH, WebMD Health close $1.2 billion merger deal

• On 4:20 pm EDT, Friday October 23, 2009

NEW YORK (AP) -- Health Web-site operator WebMD Health Corp. said Friday it completed its previously announced $1.2 billion merger with HLTH Corp.

In February of 2008, the company agreed to combine in a $2.31 billion cash and stock deal, but canceled the deal in October 2008 because of the economic downturn.

In June, the companies announced a $1.2 billion, all-stock deal. HLTH already owned 80 percent of WebMD. Under the closed deal, each HLTH share converts into 0.4444 Class A share of WebMD. WebMD Class B shares will be retired. HLTH shareholders will own about 80 percent of the combined company, which will keep the WebMD name.

Shares of WebMD rose 29 cents to close at $34.28.