Gilbert + Tobin has advised Primary Heath Care on the $155m sale of its technology division, Medical Director to Affinity Equity Partners.
The Gilbert + Tobin advisory team was led by Adam D’Andreti in the corporate team and technology partner Bernadette Jew.
The deal involved negotiating long term arrangements between Primary Health Care and Medical Director, giving Primary ongoing access to the next generation of clinical and practice management software.
D’Andreti said the strong alliance will give Primary Health Care balance sheet flexibility.
“The commercial terms of the alliance encourage future innovation in service delivery to the mutual benefit of both parties,” he told Australasian Lawyer.
“It involves the successful monetisation of an entirely new line of business, built organically out of Primary’s core business activities.
“This is a great example of the intersection of two growth sectors – healthcare and technology. It marks the start of a market leading health software and data analytics company, which also has export potential,” he said.
Jew said she expects healthcare to be a focus for the M&A market over the next 12 month period.
“It is an attractive asset class for institutional and other financial investors, for reasons including the potential growth opportunity offerings of new service delivery models and the resultant efficiencies arising out of ongoing technology innovation and digital disruption,” she said.
The sale remains subject to the satisfaction of certain customary conditions and certain potential adjustments, is expected to complete prior to the end of FY 2016.