Emdeon Looks to Sell Two Units, Stock Surges

//February 16, 2006

The Elmwood Park company has also amended an existing tax-sharing agreement with WebMD Health, its online portal.Emdeon (Nasdaq: HLTH) today announced that it has received inquiries from potential buyers for its Emdeon Business Services and Emdeon Practice Services units. The board of directors of the Elmwood Park-based company plans to contract with financial advisors to help consider any offers.

Emdeon also noted that it has amended an existing tax-sharing agreement with WebMD Health, its online portal. Under the new terms, Emdeon will compensate WebMD for any use of its net operating losses that may result from a sale of Emdeon Business Services and Emdeon Practice Services.

Shares of Emdeon, which sells business, technology and information services and products to health care providers, surged 13.5%, or $1.22, to $10.25 in late afternoon trading.