Steve Case's Revolution Health Network has found a new home.
Revolution Health, the Washington, D.C.-based online health information company founded last year by AOL co-founder case, announced on Friday the signing of a definitive agreement to merge with Waterfront Media. The Brooklyn, N.Y company, founded in 2002, is billed as one of the largest online health companies in the world, with a network of more than 20 sites.
The deal, reported by The New York Times to be worth $300 million, brings together the second- and third-largest purveyors on online health information in a bid to compete with the acknowledged front-runner, WebMD.
According to a recent study by comScore, Inc., a Reston, Va.-based analyst of digital communications, the online health information site category has grown 21 percent during the past year, more than four times the growth rate for the total U.S. Internet population.
The merger brings RevolutionHealth.com into Waterfront Media's Everyday Health Network, a network that is projected to have more than 20 million unique users and serve as the market leader in audience reach for at least 23 health conditions. The combined company will have 24 online health properties.
"The inclusion of Revolution Health and its properties in the Everyday Health Network creates the most powerful, expansive online health experience for consumers," said Benjamin Wolin, who co-founded Waterfront Media with Mike Keriakos and now serves as its CEO, in a press release. "Both companies share a common heritage of providing consumers with access to online information, tools and support for healthier living. We look forward to adding Revolution Health's world class features and sites to the Everyday Health Network."
Added Case: "When we entered the healthcare market we knew one of the areas we wanted to focus on was using the Internet to empower consumers and give them more choice, control and convenience. The merge of Waterfront Media and Revolution Health Network builds on each company's complementary strengths to create a new industry powerhouse - thus enabling us to accelerate our efforts to reach the largest, most engaged audience and help people stay healthy, mange chronic disease and deal with serious illness.
Besides RevolutionHealth.com, Everyday Health includes HealthTalk.com, which focuses on chronic illnesses; CarePages.com, offered to more than 700 hospitals to allow patients to communicate with loved ones; and affiliate agreements with Drugstore.com, Sparkpeople.com and DailyStrength.org. Other sites owned and operated by Waterfront Media include WhatToExpect.com, SouthBeachDiet.com and JillianMichaels.com.
Wolin will remain CEO of the new company, while Case - Revolution Health's CEO and chairman - will join Waterfront Media's board of directors along with an additional member of Revolution Health's board of directors, to be named later.
The merger is expected to close before the end of this month, at which time Revolution Health will become a significant shareholder of Waterfront Media.
Revolution Health LLC, the parent company of Revolution Health, will continue to maintain its investments in RediClinic, a convenient care provider; Extend Health, a provider of defined contribution programs; Brainscope, which develops technology to assess brain function at the initial point of care; and SparkPeople, an online community.
WebMD hasn't been sitting still, either. The company recently sold off its interest in Emdeon Business Services and announced the acquisition of QualityHealth.com for $50 million and an additional $25 million based on performance metrics.
According to comScore, WebMD Health continues to lead the market with 17.3 million visitors in July, up 3 percent from last July's figures. The three other top health networks are Everyday Health, with 14.7 million visitors (up 63 percent); Revolution Health Network, with 11.3 million visitors (up 182 percent); and AOL Health, with 11.1 million visitors (up 88 percent).
Will this merger compel consumers to visit the Everyday Health Network more often? What effect does this have on the online health market as a whole? Send your comments to Managing Editor Eric Wicklund at eric.wicklund@medtechpublishing.com.