IBA Health buys Medicom for $24 million

IBA Health, one of Australia's largest providers of hospital management solutions, has acquired Bangalore-based Medicom Solutions for $24 million in a 50:50 cash and stock deal. Medicom has around 150 hospital management installations across the globe and has a topline of $10 million.

IBA Health, is a listed firm in Australia with a topline of $30 million and this acquisition gives the Australian firm the expertise of 210 professionals Medicom has.

Following the merger, the combined entity will have a global team of over 450 health and technology professionals and over 420 hospitals and clinics across South Africa, Middle East, South East Asia, Australia and New Zealand as clients.

Amrit Chopra, vice chairman and CEO of Medicom, said "We are excited about the merger. The IBA and Medicom skills are complementary. The synergy generated by this strategic tie up will fuel the growth of the combined entity and attain scales which will position us as a major player in the global healthcare information technology market across."

Added Steve Garrington, CEO of IBA Health, "This combine has created a true multinational entity for both companies. We now have a leading presence also in Africa, Middle East and Malaysia. The R&D capability and development facility of Medicom gives an opportunity for us to consolidate the development work. Medicom will be the flagship product for the merged company. We believe that this combination gives us the growth engine for the future."

Avendus Advisors, an investment bank in India, advised Medicom Solutions on this transaction.