06 Jul Acquisition of Medical Software business
Global Health Limited is pleased to announce the acquisition of the medical software and associated assets of Abaki Pty Ltd (Abaki).
Global Health will pay a maximum consideration of $500,000 in four (4) equal parts of cash and Global Health Shares over 37 months. The transaction is forecast to be EPS accretive for Global Health shareholders.
Settlement of this transaction is expected within 30 days with the cash component funded from working capital.
This acquisition will:
add over 400 clients to Global Health’s client base;
further extend Global Health’s product range into the General Practice, Allied Health, Specialists, Day Hospital, Pathology and Radiology segments of the healthcare market; and
include the dedicated services of an Offshore Development Centre (ODC) based in Ho Chi Minh City that provides cost-effective and high quality support, research and development services.
Based in Victoria, Abaki has been in the medical software business in Australia for approximately 20 years with a reputation for robust applications and excellent customer support.
The addition of over 400 clients allows Global Health to extend its reach for its ReferralNet secure messaging products and LifeCard patient portal.
The Abaki product portfolio to be acquired comprises:
Practice 2000 – Abaki’s flagship product designed to support the administration of medical businesses including billing, electronic claims, document management, staff management, payroll and appointments;
MediNet – a fully featured Electronic Medical Record primarily used by General Practitioners and Specialists which includes diagnostic orders and results, case notes, prescriptions and medication management;
PracLab – a Laboratory Information system for managing the administrative requirements of pathology practices including the electronic secure distribution of pathology results;
Day Surgery Reporting – an add-on module for Day Hospitals that caters for Victorian State reporting, commonwealth and private health fund data collection requirements; and
ReportNet – one of only six government-accredited systems for Secure Message Delivery (SMD) which is the approved protocol for the secure electronic exchange of documents between healthcare providers.
The newly-acquired products complement the existing Global Health products and expand the total set of products offered by the Company to a broader segment of the healthcare market.
Mathew Cherian CEO of Global Health commented:
“We will also more than double our operational capability mostly through the Vietnam ODC. Abaki staff will need little ramp-up time given their deep and proven subject matter expertise that is across the:
many specialities involved in the health system,
constantly evolving eHealth infrastructure landscape,
variety of private and public funding regimes, and
many state and commonwealth statutory and regulatory reporting requirements unique to Australia.
Over the years, Abaki has been a quiet achiever; consistently investing in keeping their products technically abreast of the many software enhancement initiatives driven mainly by the public and private health funders of healthcare in Australia. They have developed a loyal base through this investment in regular product enhancement and a total focus on customer satisfaction. New customers have been coming on board only through word of mouth with no dedicated sales and marketing function.”
Ken Ho-Le, CEO and owner of Abaki said:
“The next inevitability in software is the move to cloud-based computing, whereby all you need is a device such as a laptop, tablet or smartphone with Internet access. You won’t need server computers and IT technicians any more, saving money. While this technology does not suit everyone, for many of our clients it means less headache and more productivity.
Global Health has extensive expertise in cloud-computing and their R&D road-map is exactly where it needs to be. I believe the merger of our products into the Global Health family will deliver the benefits of cloud computing and mobility to our clients in a very synergistic association.”
In summary, Global Health CEO Mathew Cherian said:
“This transaction is forecast to be earnings accretive in 2016 but also has additional intangible benefits for Global Health shareholders. The Company will add a substantial number of clients to our recurring revenue business model and the expanded base of clients should enhance value-add propositions available for all clients through the Group. The acquisition will also enhance the Company’s ambitions in the Asian healthcare market.”
For more information:
Chief Executive Officer
Global Health Limited
T: 61 3 9675 0688