WebMD Acquires Medscape Portals to Create Largest Network of Online Medical Professionals and ConsumersIntegration of Assets to Strengthen WebMD's Offerings to Physicians, Consumers and Health Plans
PR NEWSWIRE - December 26, 2001 09:20
ELMWOOD PARK, N.J., Dec 26, 2001 /PRNewswire via COMTEX/ -- WebMD Corporation (Nasdaq: HLTH) today announced that the Company has acquired the portal assets of MedicaLogic/Medscape, Inc. (Nasdaq: MDLI), including the Medscape Medical Professional and Medscape Health for Consumers web sites, for $10 million in cash effective immediately. Medscape's Medical Professional portal will become the Company's online brand of information, research and educational services for physicians and allied medical professionals. WebMD Health(SM) will continue as the Company's brand of online information, community and services for consumers.
With the addition of the Medscape assets, the Company's newly expanded WebMD Medscape Health Network will reach more than 15 million cumulative monthly visitors, including approximately 575,000 members registered as physicians worldwide.
"This acquisition is a great opportunity to further strengthen our product offering for physicians and is in keeping with our goal of creating the leading communication channels connecting physicians and their patients with health plans, providers and suppliers," said Martin J. Wygod, Chairman of the Board and Chief Executive Officer of WebMD. "Although there are strategic synergies, we expect to incur certain costs and expenses related to the combination of the respective operations. The acquisition may impact our financial expectations by $1-2 million for each of the next two quarters as we complete the integration."
The Company plans to integrate the Medscape Medical Professional portal into its suite of professional products and services. The Medscape services will become part of the integrated portal offering of the Medical Manager(R), the leading brand of physician practice management software, used by more than 185,000 physicians, and into WebMD Envoy(R), the leading provider of electronic transaction services, used by more than 300,000 physicians.
"When consumers or medical professionals look for information online, they seek objective, credible and trustworthy sources for that information. The Medscape editorial team brings a longstanding track record for the highest quality medical journalism," said Roger C. Holstein, Chief Executive Officer, WebMD Health. "With unmatched brand awareness, distribution and utilization, the WebMD Medscape Health Network is now the most effective way, online or offline, to reach physicians in virtually every specialty, as well as healthcare involved consumers with specific diseases or conditions."
Both WebMD and Medscape are founding members of HI-Ethics, and WebMD was one of the first websites to receive the new URAC e-health accreditation. Going forward, WebMD is committed to continuing the standards of excellence in content delivery and information practices already in place. |
