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Latest Subimo News
Sep 14, 2020
12:00 AM NEW YORK — Looking to expand on its footprint in the healthcare information field, WebMD Health Corp. has entered into an agreement to buy Subimo, LLC, a provider of healthcare information support applications to large employers, health plans and financial institutions. WebMD will pay $34 million in cash on the closing date, which is expected to occur before the end of the year, and $26 million in stock or cash two years after that closing date, subject to conditions. In addition, senior management members of Subimo will enter into long-term employment contracts with WebMD. At the same time, WebMD and its parent company, the Emdeon Corporation, released third quarter financial results that indicate WebMD’s revenues have jumped almost 50 percent over those of the same quarter last year. WebMD’s segment revenue was $66.6 million for the three months ending Sept. 30, compared to $45.1 million for the same segment last year. A press release issued by both WebMD and the Chicago-based Subimo says the acquisition will allow WebMD to delve deeper into the emerging consumer-directed health plan (CDHP) market, which comprises 6 percent of all health plans in the country and is expected to rise to 25 percent by 2010. “As healthcare consumerism continues to grow, WebMD is committed to partnering with health plans, employers and financial institutions in order to enable customers to make more informed choices and plan for future healthcare costs,” said Wayne Gattinella, WebMD’s CEO. “The acquisition of Subimo and addition of their experienced management team will allow us to better serve these key markets as well as expand our suite of market-leading online health and benefit management services.” During a conference call with analysts Thursday, Gattinella said WebMD might not be done expanding. “Whenever we can find businesses or applications that fit well with our distribution or with other assets we will take advantage of them,” he said. “At this point, we don’t know if we’re going to be doing any other (business) between now and the end of the year, but there is a possibility that we may do one.” Subimo offers a suite of decision and wellness tools that help consumers select insurance coverage, fund tax-preferred accounts, determine costs for medical services, select hospitals, drugs and physicians and manage personal health records. According to the company, nearly 75 million Americans have access to Subimo tools through their insurance company, employer of financial institution. It is estimated that 75 percent of all Blue Cross Blue Shield plans in the U.S. use Subimo tools. “Subimo is widely respected for its innovative products and commitment to client service,” said Reed F. Welch, managing director of Lane, Berry & Co., International, LLC, which served as Subimo’s financial adviser in the deal. “By combining with WebMD, Subimo will accelerate new product development and bolster its reach.” The Subimo acquisition is the latest step in WebMD’s offering of services to large employers and health plans. During the third quarter, the company implemented new online health platforms for The Kroger Co., J.C. Penney, Electronic Data Systems Corp., Medtronic, Reed Elsevier and the Rock-Tenn. Company, as well as Blue Cross and Blue Shield of Alabama, Connecticare and the New Mexico Public School System. The deal continues a busy few months for WebMD and Emdeon. In August, the Elmwood Park, N.J. company sold its Practice Services segment to Sage Software, and in September it announced the impending sale of 52 percent of its interest in the Business Services segment to General Atlantic in a move that analysts saw as an attempt to better position itself in the healthcare field. Also that month, WebMD completed the $41 million purchase of the interactive medical education, promotion and physician recruitment businesses of Medsite, Inc. Subimo, founded in 2000, had revenues of approximately $4.1 million and pre-tax income of $790,000 for the six months ending June 30, 2006. “This winning combination of our two companies will create a product arsenal that helps employers and health plans tackle this quickly evolving market,” said Ann Mond Johnson, Subimo’s president. “WebMD’s brand name and products, together with our strong client relationships and services, will certainly make great strides in helping more consumers make better healthcare decisions.” According to third quarter financial results for WebMD, the average number of unique users reached 32.3 million per month, with total traffic of 729 million page views during the quarter. That’s an increase of approximately 30 percent over the same time period in 2005. In addition, 487,000 continuing medical education programs were completed on the network, an increase of 55 percent from the previous year. More regional news
Subimo Frequently Asked Questions (FAQ)
When was Subimo founded?
Subimo was founded in 2000.
Where is Subimo's headquarters?
Subimo's headquarters is located at Chicago.
What is Subimo's latest funding round?
Subimo's latest funding round is Acquired.
Who are the investors of Subimo?
Investors of Subimo include WebMD.
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