Listed medical management platform MedAdvisor has signed a binding agreement to buy GuildLink, a provider of digital healthcare solutions and medicines information.
Based on a corporate disclosure, MedAdvisor will acquire GuildLink by issuing 57.1 million shares worth A$9.14 million ($6.3 million) or 16 cents each.
GuildLink is the digital health arm of the Guild Group, a fully owned entity of The Pharmacy Guild of Australia, a national employer’s organisation for community pharmacy owners.
MedAdvisor offers an automated software system that helps patients to manage their medications and improve adherence. Its platform has so far connected over 2.9 million Australian patients with over 70% of pharmacies nationwide. Its system is also being used by around 25,000 pharmacies in the United States.
Alongside this announcement, MedAdvisor is also aiming to raise up to A$14.6 million ($10.1 million) by offering an accelerated non-renounceable entitlement offer, or shares that can not be traded or transferred. Proceeds from this will support the integration of GuildLink, aside from funding its growth initiatives in Australia and the US.
Both companies, along with the PGA, also entered into a 10-year master services agreement to develop and deliver new and ongoing health service initiatives. As a start, they will work on a programme that involves the provision of de-identified information from participating community pharmacies to PGA to assist in its health economics modelling and advocacy.
WHY IT MATTERS
MedAdvisor said in a statement that its acquisition of GuildLink will further transform it into a “consolidated platform that removes duplication and increases efficiencies for Australian pharmacies”. Its integration will also enhance its ability to provide integrated bookings, clinical services, vaccinations and medication management for its patients.
The deal is expected to close on Wednesday, 27 July.
This latest planned acquisition follows the integration of connected care company Extensia into Hills Limited. This acquisition is part of Hills’ strategy to further expand in the digital health sector. Extensia offers the RecordPoint platform which provides clinicians with real-time access to patient records and test results.
Earlier this year, telehealth company Visionflex merged with 1st Group, an ASX-listed online health booking platform with the aim to offer a comprehensive, integrated telehealth system for clinicians.
ON THE RECORD
“As pharmacies widen their scope of practice and governments seek a more consistent approach to engaging with the pharmacy sector, our strong belief is that a best-of-breed platform is the best way to enable the industry to achieve these objectives,” MedAdvisor Chair Linda Jenkinson said about their planned acquisition of GuildLink.
“This partnership with MedAdvisor enables accelerated investment to deliver an enhanced platform to the community pharmacy network,” Guild Group Chair Andrew Bloore said.
“This transaction provides certainty for our ability to continue to deliver health service initiatives aimed at improving the health and wellness of Australians while providing an enhanced medications management technology platform that meets the ongoing needs of community pharmacy,” PGA National President Trent Twomey also commented.