WebMD offers 325% premium to acquire employee well-being specialist Limeade

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By Colin Hay - 
Limeade ASX LME WebMD

Washington and Sydney registered employee well-being firm Limeade (ASX: LME) has attracted a significant takeover bid from US online health news publisher WebMD.

Shareholders in Limeade are being offered a new share price of A$0.425, a staggering 325% above its last closing price. The transaction has valued Limeade at $112 million.

The merger agreement provides for WebMD to acquire all of the outstanding shares of Limeade common stock, including shares underlying Limeade outstanding CHESS Depositary Interest (CDIs), through a merger of a wholly-owned subsidiary of WebMD with Limeade.

Limeade is described as an immersive employee well-being company that uses a science-based approach to deliver healthy employee experiences, while WebMD is known primarily as an online publisher of news and information pertaining to human health and well-being.

WebMD Health Services, a part of WebMD Health Corporation, has more than a quarter of a century of experience providing positive behaviour changes.

Major shareholders like the deal

The offer has already received binding approval from major shareholders holding 42% of Limeade’s stock including Limeade chief executive officer Henry Albrecht, TVC Capital Partners II LP and Oak HC/FT Partners LP.

The two parties expect the takeover transaction, including all official approvals, will be wrapped up in the third quarter of 2023.

“Limeade and WebMD Health Services creates the only truly complementary combination of culture and well-being in the market, allowing us to maximise health and well-being for all people and deliver better service, support and capabilities for our clients,” Mr Albrecht said.

“We are confident that the combination will bring together WebMD Health Services human expertise and Limeade technical innovation into a comprehensive solution that will have a positive impact on people and companies worldwide.”

Limeade has suggested its shareholders take no action at this time as it plans hold a special meeting of shareholders for the purpose of voting on the merger agreement and other matters related to the transaction.