Web Medical Buyout

MedicaLogic Inc., a medical-records software company, said it will buy two Web-based health services for about $1.24 billion. Hillsboro, Ore.-based MedicaLogic will buy Medscape Inc., which runs health-care Web sites, for about $830.1 million in stock, and medical transcription service Total EMed for about $405.5 million in stock. Medscape Inc. will give MedicaLogic Inc. access to more than 1.7 million subscribers of medscape.com, its Web site for medical professionals. The combined company will be called MedicaLogic/Medscape. MedicaLogic will pay 0.323 of a common share for each share of Medscape. Total EMed will receive 8 million MedicaLogic shares. MedicaLogic shares fell $6.69, or 13%, to close at $44, while Medscape rose $1.13 to close at $13, both on Nasdaq.