UPDATE 1-WebMD, MTS end merger agreement
Nov 19 (Reuters) - Health information services provider WebMD Health Corp (WBMD.O) said it will not buy Marketing Technology Solutions Inc (MTS), and entered into an advertising services agreement with MTS.
WebMD had agreed to acquire QualityHealth.com and MTS for $50 million in cash in September.
On Wednesday, WebMD said it bought a minority interest in MTS, the owner of QualityHealth.com. Financial terms of the deal were not disclosed.
Under the advertising services agreement, WebMD will represent a portion of QualityHealth.com's media inventory and provide QualityHealth.com with limited access to certain of its inventory.
Last month, WebMD and its parent company HLTH Corp (HLTH.O) terminated their merger agreement citing the debt load that the new company would be saddled with in a deteriorating credit market.
HLTH also said the sale of another unit, Porex, was delayed as a potential buyer had difficulty arranging financing.
Shares of WebMD were up 32 cents at $18.95 in morning trade Wednesday on Nasdaq. (Reporting by Anand Basu in Bangalore; Editing by Pratish Narayanan)
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