Business
WebMD acquires wellness company
NEWS IN BRIEF — Posted May 8, 2006
WebMD Health Corp. announced April 17 that it agreed to acquire Summex Corp. for $30 million and will pay an additional $10 million over a two-year period if certain milestones are achieved. Based in Indianapolis, Summex sells wellness and health-risk appraisal programs to health plans and large employers.
Summex reported that it broke even in 2005, with $6 million in revenue. But WebMD expects the company's services to be in greater demand with the growth of consumer-directed health plans and employers' increasing efforts to encourage employees to live healthier. The transaction is expected to close by July 1.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2006/05/08/bibf0508.htm.