(RTTNews) - HLTH Corp.
(HLTH) Tuesday agreed to sell its data-management unit ViPS to General Dynamics Information Technology Inc., a unit of General Dynamics Corp.
(GD) in order to effect the proposed merger with WebMD Health Corp.
(WBMD).
ViPS is a provider of healthcare data management, analytics, decision-support and process automation solutions and related information technology services to governmental, Blue Cross Blue Shield and commercial healthcare payers.
Under the deal, HLTH agreed to sell ViPS for $225 million in cash. The closing of the transaction is subject to customary closing conditions.
In February, HLTH agreed to merge with 84% owned subsidiary, WebMD, under which HLTH will merge into WebMD in a cash and stock deal worth $2.3 billion.
In the merger, each outstanding share of HLTH common stock will be converted into 0.1979 shares of WebMD common stock and $6.89 in cash.
The completion of the merger is conditioned upon completion of SEC review of the proxy statement/prospectus, the completed sale of either ViPS or Porex and the approval of the stockholders of both HLTH and WebMD.
HLTH and WebMD currently expect to hold stockholder meetings in September to seek necessary approvals.
Jefferies & Co. Inc. acted as exclusive financial advisor to HLTH in the sale of ViPS and has also been engaged to complete the sale process for Porex.
HLTH closed Tuesday's regular trading session at $12.01, up 1 cent. GD ended Tuesday's regular trading session at $89.83, down $1.50 or 1.64%. In the after-hours, shares gained 1 cent. WBMD finished Tuesday's regular trading session at $31.30, up 51 cents or 1.66%. In the after-hours, shares further gained 11 cents.
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