Telstra takes a stake in Orion Health
Telstra Health has invested $NZ20 million ($A18m) in Orion Health, representing about two per cent of the company's shares.
Orion Health completed a book build last week to set a price for its stock in advance of its initial public offer (IPO, which it has now set as $5.70, at the top of its indicative price range.
Orion Health said in a statement that the IPO raised $125 million, comprising $120 million of new capital and a $5 million sale by CEO and founder Ian McCrae.
Orion said Telstra Health joins over 20 new institutions who will become shareholders in Orion Health as part of the IPO.
Mr McCrae said that in addition to Telstra's investment, the two companies would work together on eHealth initiatives for the Asia Pacific region.
Telstra Health MD Shane Solomon said that the investment reflected Telstra Health’s ambition to be a leading provider of integrated eHealth solutions.
“To create a truly connected health care system means working with providers, government and funders as well as some of the world’s best and most innovative solutions,” Mr Solomon said. “Orion Health is a world leader in this sector and we are excited to work with them.”
Orion Health is expected to commence trading on the New Zealand and Australian stock exchanges on November 26 under the code OHE.
Both Telstra Health and Orion Health have announced they are making big plays in the health IT market. Telstra announced its strategy last year, purchasing or investing in a number of eHealth companies, along with the big announcement last month that it would launch a telehealth solution in 2015.
Orion Health has restructured its solutions groups to better reflect its strategy, part of which is the IPO to raise money to invest in research and development.
Posted in Australian eHealth