The Medibank Private Ltd (ASX: MPL) share price is in focus today after the company announced the acquisition of Better Medical, a network of 61 GP and medical clinics, for approximately $159 million. Medibank expects Better Medical to deliver around $6 million in EBITDA for the six months to 30 June 2026.
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What did Medibank Private report?
- Agreed to acquire Better Medical, a primary care provider with 61 clinics across four states
- Purchase price of approximately $159 million, subject to closing adjustments
- Acquisition to be funded from existing unallocated capital
- Expected EBITDA contribution of $6 million in six months to 30 June 2026
- Total M&A investment for FY24–26 now $218 million, nearing the target range
- Supports goal of at least $200 million Medibank Health segment profit and ~$700 million capital employed by FY30
What else do investors need to know?
The acquisition builds on Medibank's primary care expansion, following its existing majority interest in Myhealth Medical Group, which operates 105 clinics. Medibank aims to improve service delivery for patients and clinicians by investing further in digital health capabilities and care accessibility.
The deal is subject to customary conditions including approval from the Australian Competition and Consumer Commission (ACCC) and is expected to complete by the end of the third quarter of FY26. Importantly, Medibank states that Better Medical clinics will remain doctor-led, with full clinical autonomy and independent fee-setting.
What did Medibank Private management say?
Amplar Health Chief Executive Robert Read said:
Primary care is the cornerstone of the health system, with GPs, nurses and other health professionals vital to early intervention and prevention in their communities. Investing in GPs and their teams to enable them to deliver more proactive and preventative care is good for patients, good for doctors and good for the health system.
What's next for Medibank Private?
Medibank will now focus on integrating Better Medical into its broader health portfolio, aiming to ramp up digital investment and help clinicians deliver more proactive, connected care. The group remains committed to supporting GPs while pursuing overall growth in its health segment profit and capital employed targets.
Completion of the acquisition is anticipated by the third quarter of FY26, provided all regulatory and closing conditions are met. Medibank will also continue seeking further opportunities to build its presence in the primary healthcare sector.
Medibank Private share price snapshot
Medibank Private shares have soared 38% over the past year, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased around 8% over the same period.
