Bellevue-based employee well-being company Limeade is being acquired by Portland-based WebMD Health Services for $75.3 million.
The companies announced the deal Thursday and expect it to close in the next quarter, pending shareholder and regulatory approval. The combined company will have more than 700 employees, according to a news release.
"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,” Limeade founder and CEO Henry Albrecht said in the release.
Limeade plans to hold a special meeting of shareholders to vote on the proposed acquisition. The company will send out a proxy statement with information about the transaction and the meeting in mid- to late July.
Limeade, founded in 2006, allows employers to create surveys for employees. The surveys also allow employees to provide feedback on the types of programs they would appreciate. Limeade also guides employees to relevant benefits to increase participation. Its clients include Bosch and Perrigo. Limeade generated $56 million in revenue last year compared to $55.2 million in 2021. According to a release, Limeade works with more than 1,000 organizations and "millions of employees."
In 2021, Limeade acquired Seattle-based employee-feedback software company TinyPulse for $8.8 million. A Limeade spokesperson at the time said the combined company would have roughly 300 employees. By the end of 2022 the company had grown to 320 full-time employees, it disclosed in its annual report.
In January of this year, however, Limeade announced it was laying off 15% of its staff. The company expected to finish making cuts by the end of the first quarter.
WedMD Health Services is the employee wellness arm of health information company WebMD. The health services arm works with employers and health plans to create solutions like wellness challenges, rewards programs and daily habit plans to guide employees.
