Limeade (ASX:LME) selling to WebMD
June 9, 2023The Board of Limeade Directors have unanimously accepted a complete acquisition offer from WebMD and is set to be snapped up by the American health publisher at a massive recent premium of $0.45 a share.
It is a 217 per cent premium on LME’s 30-day volume weighted average – and a 325 per cent premium from when the ASX closed on Thursday afternoon.
Acquisition premiums typically range between 20 to 50 per cent. While Limeade posted a US$13m loss from the most recent financial year, some saw the employee well-being company finally approaching the breakeven point.
“Limeade and WebMD Health Services creates the only truly complementary combination of culture and well-being in the market, allowing us to maximize health and well-being for all people and deliver better service, support and capabilities for our clients,” Limeade Chief Executive Henry 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,” he added.
WebMD General Manager of Health Services John Harrison said the two companies were purpose-driven organizations with more than 40 years of combined experience driving positive health behaviour changes.
“Together the combined organization will re-energize the market delivering the most comprehensive, holistic well-being solution and services that help organizations build a culture of well-being that inspires a happier, healthier, and more engaged population,” Mr Harrison said.
Limeade will remain a wholly owned subsidiary of WebMD if the transaction closes as expected, the major shareholders have signed binding voting and support agreements, and the vote will now fall to the remaining 48 per cent of the issued capital.
While sold at a recent premium, it remains a heady fall for an Australian company whose share price once traded at over AUD$2 during the COVID pandemic.
January layoffs and the resignation of Limeade Chief Financial Officer Todd Spartz were the early signs of discontent in the year, and the company will now continue under the umbrella of one of the largest online health publishers.
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