Australia: ASX-listed MedAdvisor buys tech startup Healthnotes in $4.1m deal

Visual of MedAdvisors homepage. September 2016

ASX-listed MedAdvisor has acquired rival tech startup Healthnotes for a consideration of A$5.5 million ($4.14 million) to emerge as  Australia’s leading medication management platform.

The cash-cum-stock deal comprises a cash consideration of A$3.3 million. The balance is being paid through the issue of new MedAdvisor shares to Healthnotes shareholders.

MedAdvisor offers free smartphone and internet apps focused on helping patients take appropriate medicinal doses and has recently expanded to include both general practitioners and pharmacies on its platform.

Medivisor’s acquisition of Melbourne-based Healthnotes, which manages patients’ messaging and medical adherence and maintains a large list of partner pharmacies, is a strategic move towards scaling its operations.

In an interaction with StartupSmart, MedAdvisor CEO Robert Read commented: “Healthnotes was the incumbent player in this market until MedAdvisor came along and they’ve got a very good market position with a large number of pharmacies. For us it was a logical choice to both dramatically increase our scale and to advance our business by 12 months.”

Following the deal, MedAvisor’s shares increased by over 8 per cent in value, pushing its market capitalisation to A$16.27 million ($12.2 million).

The acquisition will see the integration of Healthnotes’ network of users and partners, with MedAdvisor now possessing over 4,000 GPs on its platform, 1700 nursing homes and a user base of 5 lakh Australian patients.

According to Read, MedAdvisor will be exploring potential acquisitions with target firms likely being those that offer prospects for international expansion.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.