Primary Health Care sells Medical Director to Affinity Equity Partners

Primary Health Care has offloaded its GP practice management software business for $155 million to Affinity Equity Partners in the same month that China's Jangho Group has seized an 11 per cent stake in the near $2 billion company, sparking takeover speculation.

Primary Health Care chief executive Peter Gregg said the company would continue to be a customer of Medical Director, which Primary founder Ed Bateman acquired more than a decade ago for about $100 million.

"Primary will continue its partnership with Medical Director as a long‐term customer utilising its existing products and services. Importantly, Primary has also secured in principle agreement with Medical Director for the development of, and access to, next generation clinical and practice management software solutions," Mr Gregg said in a statement to the exchange.

He added that the sale, in conjunction with the Barangaroo sale, should reduce net debt to about $900 million.

Read more at: http://www.smh.com.au/business/primary-health-care-sells-medical-director-to-affinity-equity-partners-20160328-gnst7a.html