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Janus takes WebMD stake
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January 27, 2000: 12:21 p.m. ET
Janus paying $930M for 15M shares of online health-care company
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NEW YORK (CNNfn) - Janus Capital Corp. will invest $930 million in Internet health-care company Healtheon/WebMD Corp., the online medical firm said Thursday.
Fast-growing Healtheon/WebMD plans to use the cash to fund its recently announced acquisition of Envoy Corp., the electronic transaction unit of drug marketing research firm Quintiles Transnational Corp. (QTRN) and to provide it with additional capital. (CNN.com has a content partnership with WebMD and CNN parent company Time Warner Inc. (TWX) has a small equity stake in the firm.)
In exchange for its investment, Janus will receive 15 million shares of Healtheon/WebMD for $62 per share.
Healtheon/WebMD (HLTH) stock rose 5-3/16, or 8 percent, to 71-1/2 in midday trading on Nasdaq.
The stock has surged more than 100 percent this month amid a string of deals and bullish comments by analysts. But shares are well off their 52-week high of 126-3/16, reached after Santa Clara-based Healtheon, which focused on medical billing and administration, announced its purchase of doctor- and consumer-oriented WebMD of Atlanta in May 1999.
On Wednesday, the company announced a $100 million joint venture with medical device maker Medtronic Inc. (MDT) to provide information about medical products and treatments online.
The company also has recently announced pacts with drugstore chain CVS Corp. (CVS) for online pharmacy services and a content and advertising deal with media conglomerate News Corp. (NWS). 
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