UPDATE 1-HLTH to sell ViPS unit to General Dynamics for $225 mln

(Recasts; adds details)

June 3 (Reuters) - Health information services provider HLTH Corp HLTH.O said it agreed to sell its ViPS segment to a subsidiary of General Dynamics Corp (GD.N) for $225 million in cash.

HLTH, which is merging into its unit WebMD Health Corp (WBMD.O), had decided to divest ViPS and Porex segments.

Completion of the merger is conditioned upon, among other things, the completed sale of either ViPS or Porex segments.

In 2007, the ViPS segment, which provides healthcare data management, generated $103.1 million in revenue.

Jefferies & Co acted as the financial advisor in the sale of ViPS and has also been engaged to complete the sale process for Porex, the company said in a statement.

Shares of HLTH closed at $12.01 Tuesday, while WebMD closed at $31.30 on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Amitha Rajan)