Waterfront Media, the largest private online health company, and Revolution Health Network, another leading online health information company, today announced that they have signed a definitive agreement to merge that will create a new powerhouse in the online health space. With this merger, the Everyday Health Network, which is operated by Waterfront Media, will now include RevolutionHealth.com andÂ all the online propertiesÂ associated with the Revolution Health Network, forming the most comprehensive online destination designed to enable consumers to live healthier lives every day. Both companiesÂ™ boards of directors unanimously approved the merger.
The combined company is projected to have more than 20 million unique users* and, according to a comScore Plan Metrix custom report for the month of June, will be the market leader in audience reach for 23 health conditions. Waterfront Media CEO and co-founder Benjamin Wolin will remain chief executive officer of the new company. Steve Case, chairman and CEO of Revolution Health Group, and an additional member of Revolution HealthÂ™s board of directors to be named later, will join the Waterfront Media board of directors. The company will keep the name Waterfront Media, and will operate all sites under the Everyday Health Network. The company will remain headquartered in Brooklyn, NY. Doug McCormick, former CEO of Lifetime TV and iVillage, will remain chairman of the company. Mike Keriakos will remain president of the company. Financial terms were not disclosed.
The inclusion of Revolution Health and its properties in the Everyday Health Network creates the most powerful, expansive online health experience for consumers, said Wolin. 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 HealthÂ™s world class features and sites to the Everyday Health Network. The combined company will bring together some of the industryÂ™s best assets and enable us to accelerate our growth, reaching our respective goals faster with newly combined resources.
When we entered the health care 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, said Case. The merger of Waterfront Media and Revolution Health Network builds on each companyÂ™s complementary strengths to create a new industry powerhouse Â“ thus enabling us to accelerate our efforts to reach the largest, most engaged audience and help people stay healthy, manage chronic disease and deal with serious illness.
Waterfront Media, which operates the Everyday Health Network, was founded by Wolin and Keriakos in 2002 and has since grown to become one of the top online health companies. Its network of more than 20 leading sites includes its flagship site, EverydayHealth.com, as well as WhatToExpect.com, SouthBeachDiet.com, JillianMichaels.com, and more.
Revolution Health Network has also become a leading online health information company since its launch in 2007. Web sites operated by or affiliated with the Revolution Health Network that complement Everyday Health will include:
By combining, the companies will have 24 online health properties, which will offer advertisers the unique opportunity to target consumers across the entire spectrum of online health and wellness.
Upon the closing of the transaction, which is expected by mid-October 2008, Revolution Health will become a significant shareholder of Waterfront Media and join existing investors Rho Ventures, Scale Venture Partners, Foundation Capital, Neocarta Ventures, BEV Capital, Time Warner Investments and Village Ventures. Revolution LLC Â“ the parent company of Revolution Health Â“ will continue to maintain its broad health portfolio through investments in RediClinic, a leading convenient care provider; Extend Health, a leading provider of defined contribution programs; Brainscope, which develops breakthrough technology that assesses brain function at the initial point of care; and SparkPeople, an online community that empowers users to change their lives for the better.
According to comScore Media Metrix August 2008 figures, Everyday Health had more than 14 million unique users and more than 80 million page views. Revolution Health Network had more than 12 million unique users and 200 million page views over the same period. The combined company is expected to reach well more than 20 million unique users and generate more than three billion page views per year, making it a leading health company in terms of both reach and utilization.
The respective financial and legal advisors to Waterfront Media are Credit Suisse and Pillsbury Winthrop Shaw Pittman LLP, and to Revolution Health Network are Morgan Stanley and Cooley Godward Kronish LLP.
About Waterfront Media and the Everyday Health Network
Waterfront Media is the largest privately held online health company and operates the Everyday Health Network, which attracts over 14 million unique users per month. Through its portfolio of health & wellness, diet, fitness, and pregnancy Web sites, including its flagship EverydayHealth.com, Waterfront Media enables consumers to live healthier lives every day. Waterfront Media was founded by CEO, Ben Wolin, & President, Mike Keriakos in 2002.
About Revolution LLC and Revolution Health
Revolution LLC was created by AOL Co-Founder Steve Case to create products and services that empower people and promote consumer-centered change. Today Revolution owns businesses in the healthcare, financial services, resorts, wellness and digital sectors. It is the largest investor in five principal health-related investments, including Revolution Health Network, with its flagship RevolutionHealth.com, and sites CarePages.com, HealthTalk.com, and affiliate partners; RediClinic, a leading convenient care provider; Extend Health, a leading provider of defined contribution programs. Revolution is also a significant minority investor in Brainscope, which pioneers breakthrough technology that assesses brain function at the initial point of care; and SparkPeople, an online community that empowers users to change their lives for the better.
* Source: comScore Media Metrix, August 2008
For Waterfront Media:
John Dillard, 212-704-8174
Christopher Mittendorf, 212-704-8134
For Revolution Health:
Brad Burns, 202-776-1400