The Wesfarmers Ltd (ASX: WES) share price is pushing higher on Tuesday.
In morning trade, the conglomerate's shares are up 0.5% to $47.89.
Why is the Wesfarmers share price rising?
Investors have been buying Wesfarmers' shares today after the company announced a new acquisition.
According to the release, the company has entered into an agreement to purchase InstantScripts for $135 million.
InstantScripts is one of Australia's leading telehealth businesses and will become part of the Wesfarmers Health division.
Why is it acquiring InstantScripts?
Wesfarmers Health's managing director, Emily Amos, advised that the acquisition would add a substantial presence in the growing telehealth sector to the division, aligning with its broader focus on digital health. Ms Amos said:
Over recent years telehealth has emerged as an important service, complementing the care delivered through GP practices, pharmacies and other allied health providers. Our goal is to make Australians' health, beauty and wellness experiences simpler, more affordable and easier to access. InstantScripts provides flexible services that are available at short notice and outside of normal consultation hours, and is accessible to patients in remote areas and those who have difficulty visiting a GP.
Amos also advised that she believe InstantScripts was complementary to the existing Wesfarmers Health portfolio and that the acquisition would provide opportunities to leverage its existing pharmacy and Clear Skincare networks. She adds:
Wesfarmers Health plans to invest in the continuing growth of InstantScripts and the expansion of digital health services for patients. The InstantScripts clinical governance framework is well structured and we welcome the opportunity to apply Wesfarmers Health's expertise and relationships to further strengthen and improve clinical outcomes for our patients.
Bailador Technology Investments Ltd (ASX: BTI) shares are also rising on the news. That's because the investment company is one of InstantScripts' owners.
It advised that the transaction will result in Bailador exiting its whole position in InstantScripts, realising $52 million cash. This represents an uplift of 25% to the current carrying value of InstantScripts.