Medical Manager Corp. (Nasdaq: MMGR) rose 6 1/8 to 33 Monday after Healtheon/WebMD Corp. (Nasdaq: HLTH) raised its offer for the software company.
Healtheon/WebMD, which has dropped from above 60 after agreeing to acquire Medical Manager in February, said it will exchange 2.5 of its shares for each of the outstanding Medical Manager shares, up from an initially planned 1.6 shares.
Healtheon/WebMD is also buying Medical Manager affiliate CareInSite, Inc. (Nasdaq: CARI). The exchange ratio for that company remains at 1.3 Healtheon shares for each CareInSite share.
The Atlanta, Georgia-based Healtheon/WebMD said it expects to complete the acquisition in September. The combined company will be renamed WebMD.
“Our renegotiated agreements reflect our shared commitment to complete the transactions as quickly as possible to allow us to focus on efficiently deploying our merged company’s combined assets,” said Healtheon/WebMD Chief Executive Officer Jeff Arnold.
Shares of Healtheon/WebMD, which runs an online community linking doctors, patients and insurance companies, fell 2 51/16 to 14 9/16 Monday. CareInSite dropped 3 to 17 5/8.