Sign in Subscribe
Internet services

Healtheon/WebMD Expands Healthcare Network through Medical Manager Acquisition

Strategic Insights

— 1 min read

Healtheon/WebMD, a leader in processing electronic healthcare transactions, has made a significant move in its quest to transform the healthcare industry by acquiring Medical Manager Corp. and its subsidiary CareInsite Inc. The all-stock deal, worth approximately $4.9 billion, will integrate Medical Manager's physician practice management software with Healtheon/WebMD's Internet-based healthcare portal services, creating a comprehensive platform for healthcare professionals.

The combined entity will have over 5,000 employees, world-class partnerships, market-leading technology, the leading Internet healthcare brand, and over $1.5 billion in cash. The acquisition is seen as a critical step in realizing Healtheon/WebMD's vision of a more efficient and effective healthcare delivery system.

Key Takeaways:

  • Healtheon/WebMD has acquired Medical Manager Corp. and its subsidiary CareInsite Inc. in an all-stock deal worth approximately $4.9 billion.
  • The combined entity will integrate Medical Manager's physician practice management software with Healtheon/WebMD's Internet-based healthcare portal services.
  • The acquisition will create a comprehensive platform for healthcare professionals, with over 5,000 employees, world-class partnerships, and market-leading technology.
  • Healtheon/WebMD will maintain existing strategic partnerships, including a partnership with Cerner Corp. (NASDAQ:CERN), which owns 20% of CareInsite.
  • The deal is expected to be completed by mid-year, pending regulator and shareholder approval.
  • Investors have shown approval for the deal, with Medical Manager shares increasing by over $22 to approximately $87.50, and CareInsite shares up $4.75 to just over $72.50.

Statistics:

  • Deal value: approximately $4.9 billion
  • Number of employees: over 5,000
  • Cash reserves: over $1.5 billion
  • Integration expected to be completed by mid-year
  • Share price increase for Medical Manager Corp.: over $22 to approximately $87.50
  • Share price increase for CareInsite Inc.: $4.75 to just over $72.50

Sources:

  • Healtheon/WebMD Corp. press release, February 14, 2000
  • Medical Manager Corp. press release, February 14, 2000
  • CareInsite Inc. press release, February 14, 2000
  • Newsbytes.com report, February 14, 2000 ("Healtheon/WebMD to Acquire Medical Manager, CareInsite", Jennifer Meyer, for Healtheon/WebMD)

Read more