The Telstra Corporation Ltd (ASX: TLS) share price could be on the move on Monday.
This follows the release of an announcement this morning by the telco giant.
Why is the Telstra share price on watch?
All eyes will be on the Telstra share price after the company announced an agreement with Affinity Equity Partners to acquire MedicalDirector for an enterprise value of $350 million.
MedicalDirector is an Australian GP clinical and practice management software company that has been trusted by healthcare practitioners for over 25 years.
The release notes that it provides software as a service (SaaS) and innovation to the healthcare industry. This includes across electronic health records, patient and practice management, billing, scheduling, care coordination, medicines information and clinical content.
It currently supports approximately 23,000 medical practitioners and is used to deliver more than 80 million consultations a year.
The transaction is expected to complete in the first quarter of FY 2022.
Why is Telstra acquiring MedicalDirector?
Telstra Health's Board Chair, Brendon Riley, notes that the acquisition of MedicalDirector is a key step in Telstra Health's vision to create a connected and improved digital health experience for all.
He said: "MedicalDirector is a modern clinical and practice management solution that supports GPs and other medical specialists to focus on providing high quality care and reducing time on paperwork and administration. It supports consultations by medical practitioners through a comprehensive patient medical record, including electronic prescriptions, options for virtual consultations, patient care plans, real time alerts about drug safety and drug interaction, and a range of other functionalities."
Mr Riley believes the business will be a very important addition for Telstra Health. It also expands the company's footprint in the UK market.
He explained: "GPs play a central role in connecting to every part of the health and aged care systems, and practice management is an incredibly important addition for Telstra Health in providing quality solutions and supporting them to deliver care."
"Telstra Health has transformed substantially over the past five years and this announcement reflects its continuing maturity as a business and its importance as part of Telstra's long-term growth strategy. It also reflects its continued growth into a global business, including strengthening our existing presence in the UK where MedicalDirector has been establishing itself in recent years," he added.
The Telstra share price is up 26% in 2021.
