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Telstra (ASX:TLS) to acquire software company MedicalDirector

ASX 200
ASX:TLS      MCAP $42.05B
09 August 2021 08:11 (AEST)

Telstra (TLS) has announced plans to acquire MedicalDirector, a global software company which helps manage GP clinics and practices.

The telco giant announced on Monday that its business Telstra Health has entered into a contract to purchase the company for an enterprise value of$350 million.

Telstra Health Board Chair Brendon Riley said the acquisition would help it provide an improved digital health experience and also expand its footprint internationally.

“GPs play a central role in connecting to every part of the health and aged care systems, and practice management is an incredibly important addition for Telstra Health in providing quality solutions and supporting them to deliver care,” Mr Riley said.

“Telstra Health has transformed substantially over the past five years and
this announcement reflects its continuing maturity as a business and its importance as part of Telstra’s long-term growth strategy.

“It also reflects its continued growth into a global business, including
strengthening our existing presence in the UK where MedicalDirector has been establishing itself in recent years.”

TLS plans to acquire the business from funds advised by Affinity Equity Partners, with the transaction expected to completed in Q1 FY22.

This is the second time in recent months Telstra has purchased a health business, with the telco also acquiring global healthcare organisation PowerHealth.

Telstra shares were trading 0.26 per cent in the green following Monday’s announcement, worth $3.81 per share at 10:46 am AEST.

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