HEALTHEON/WEBMD: To Acquire Key Online Competitor
Healtheon/WebMD will acquire OnHealth Network Co., a key competitor in the online consumer health information market, for about $313 million in stock, officials said yesterday. Announcement of the deal comes just two days after the news of Healtheon's purchase of CareInsite and Medical Manager Corp. (Reuters/Contra Costa Times, 2/16). Analysts said that the acquisition of OnHealth, the most-visited health care Web site for consumers, should give Healtheon a clear advantage in the consumer e-health market -- which the company hopes will attract physicians interested in using its other services (Kanell, Atlanta Journal- Contitution, 2/17). The purchase is expected to be completed by the summer, subject to regulatory approval. Healtheon officials said they now plan to focus on integrating the array of companies and services acquired in their recent deal-making spree (Reuters/Contra Costa Times, 2/16).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.