WebMD Buys Subimo

The deal is worth $60 million.
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Health information provider

WebMD

(WBMD)

says it's acquiring Subimo, a privately held provider of health benefit applications, in a deal worth $60 million.

The acquisition will add advanced online health applications to WebMD's health and benefits portals and allow the company to better address the emerging market for consumer-directed health plans.

The total price tag includes $34 million in cash payable on the closing date and $26 million in WebMD stock or cash, whichever WebMD selects, to be paid on the second anniversary of the closing.

However, if the value of the deferred consideration is less than $15.6 million at the second anniversary, WebMD will pay the shortfall in cash or additional shares. The acquisition should close before the end of the year.

WebMD's shares were up 66 cents, or 1.8%, to $36.82.