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|Emdeon Announces Completion of Sale of 52% Interest in Emdeon Business Services Segment to General Atlantic|
ELMWOOD PARK, N.J., Nov. 16 /PRNewswire-FirstCall/ -- Emdeon Corporation (Nasdaq: HLTH) announced today that it has completed the sale of 52% of its Emdeon Business Services segment to an affiliate of General Atlantic LLC. This transaction was previously announced on September 26, 2006. ViPS, Inc. and its subsidiaries are not part of this transaction and will remain subsidiaries of Emdeon.
Emdeon received approximately $1.2 billion in cash and retained a 48% interest in Emdeon Business Services. The acquisition was financed with approximately $925 million in bank debt and an investment of approximately $319 million by General Atlantic. The transaction was structured so Emdeon and General Atlantic each own interests in a limited liability company (LLC) which owns the entities comprising Emdeon Business Services. The bank debt is a liability of the LLC and not an obligation of or guaranteed by Emdeon Corporation. The Board of Directors of Emdeon Business Services will consist of three directors appointed by Emdeon including Kevin Cameron, Charles Mele and James V. Manning, as well as three directors appointed by General Atlantic, including Jonathan Korngold and Mark Dzialga. The Board will oversee the company's management team and set long-term strategy.
Emdeon Business Services will continue its strategic relationships with WebMD and will market WebMD's online decision-support platform and tools that support consumer directed health plans (CDHP) and health savings accounts (HSA) to its payer customers for integration into their CDHP offerings. WebMD's online decision-support platform currently helps consumers plan for their healthcare needs in the near-term and in retirement in order to maximize use of their HSA funds and realize the benefits of consumer directed healthcare.
Emdeon Corporation's (Nasdaq: HLTH) businesses are comprised of WebMD Health Corp., (Nasdaq: WBMD), ViPS and Porex. WebMD (Nasdaq: WBMD) provides health information services for consumers, physicians, healthcare professionals, employers and health plans through its public and private online portals and health-focused publications. ViPS provides healthcare analytics, technology and reporting that help government agencies and commercial health plans improve patient outcomes, customer satisfaction and cost savings. Porex is a developer, manufacturer and distributor of proprietary porous plastic products and components used in healthcare, industrial and consumer applications.
About General Atlantic
General Atlantic LLC is a leading global private equity firm providing capital for growth companies driven by information technology or intellectual property. The firm was founded in 1980 and has approximately $10 billion of capital under management. General Atlantic has invested in over 150 companies, with current holdings in 50 portfolio companies of which about one-half are based outside the United States. The firm is distinguished within the investment community by its global strategy and worldwide presence, its commitment to provide sustained value-added assistance for its portfolio companies and its long-term approach. General Atlantic has nearly 70 global investment professionals among its 145 employees worldwide with offices in Greenwich, New York, Palo Alto, London, Dusseldorf, Hong Kong and Mumbai. For further information and a listing of GA's public and private portfolio companies see http://www.generalatlantic.com.
About Emdeon Business Services
Emdeon Business Services is a leading provider of revenue cycle management and clinical communication solutions that enables payers, providers and patients to improve healthcare business processes. Our solutions are designed to simplify the business and improve the delivery of healthcare for providers, payers and patients. Emdeon Business Services is owned by General Atlantic and Emdeon Corporation.
All statements contained in this press release, other than statements of historical fact, are forward-looking statements, including those regarding: ongoing business relationships between Emdeon Business Services and other Emdeon businesses. These statements are based on our current plans and expectations and involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements, including risks and uncertainties regarding: the amount and timing of potential benefits of the transactions referred to in this release; relationships with customers and strategic partners; and changes in economic, political or regulatory conditions or other trends affecting the healthcare, Internet and information technology industries. Further information about these matters can be found in our Securities and Exchange Commission filings. We expressly disclaim any intent or obligation to update these forward-looking statements.