HealthGrades buys Australian health portal WrongDiagnosis.com

Oct 14 2008

Health Grades, Inc. has announced the acquisition of WrongDiagnosis.com, a highly trafficked health information and community web site based in Cairns, Australia.

According to comScore MediaMetrix's September rankings, the combined HealthGrades' sites will comprise the 9th largest ad-supported healthcare property, after considering the recent merger and acquisition activity among other health properties.

WrongDiagnosis.com was owned by Adviware Pty. Ltd., a privately held company based in Australia. HealthGrades acquired the WrongDiagnosis.com Web site, along with the company's CureResearch.com Web site, certain intellectual property and other domains, for approximately $6.2 million in cash. The owners of Adviware will receive additional consideration if they exceed certain page view and revenue targets. Certain principals of Adviware will provide consulting services to HealthGrades for up to two years. Adviware generates revenue of approximately $2 million annually. HealthGrades management anticipates the acquisition will be immediately accretive to earnings.

"HealthGrades.com has long been the leading online destination for active patients - individuals in immediate need of researching and choosing doctors, hospitals and other healthcare providers. We are now enhancing our positioning to be a more comprehensive resource coach to active patients by augmenting our ratings and other quality information with condition-specific information and community forums that continue our mission to guide Americans to better healthcare," said Kerry Hicks, CEO of HealthGrades.

"Through its WrongDiagnosis.com and CureResearch.com Web sites, Adviware has demonstrated an ability to present healthcare consumers with medical information that is easily interpreted, yet highly relevant. We are confident that this information will be valued by HealthGrades' active patient user base and the combined web properties will provide a platform for enhanced growth and improved profitability. This acquisition will allow advertisers to target active patients specifically by condition or treatment area across a range of content, from healthcare ratings, to state-of-the-art health risk assessment tools," Hicks added.