WATERTOWN, Mass. (AP) — Healthcare technology company Athenahealth Inc. said Monday that it is buying medicine-app maker Epocrates Inc. for about $292.2 million in cash in an effort to attract more physicians and offer them more services.

Under the terms of the agreement, the Watertown, Mass.-based company will pay $11.75 per share for Epocrates. That's 22 percent above the San Mateo, Calif.-based company's Friday closing stock price of $9.62. Epocrates stock jumped $2.14, or 22 percent, to $11.76 in premarket trading Monday.

Epocrates makes an app that allows doctors to look up data about medications on smartphones and tablets. Drugmakers provide most of Epocrates' revenue by buying ads within the app.

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