KKR is buying WebMD in $2.8 billion cash deal

Private-equity firm KKR is buying health information website WebMD in a deal valued at about $2.8 billion.

The sale comes after WebMD's (WBMD) February announcement that it was looking at its strategic options, including a possible sale. KKR's Internet Brands, an online media and software services provider and subsidiary of KKR, will pay $66.50 per WebMD share. That's an approximately 20 percent premium to the New York company's Friday closing price of $55.19.

WebMD said it was putting itself in play earlier this year amid a changing landscape for the healthcare industry. The uncertainty around healthcare and pharmaceutical regulations had dampened advertising demand on its site, the company said earlier this year. In becoming part of KKR's Internet Brands, WebMD will join a suite of healthcare-focused sites such as HealthBoards and DentalPlans.com. 

WebMD's board has approved the transaction, which is targeted to close in the fourth quarter.

WebMD's stock jumped more than 17 percent in premarket Monday trading.