Orion Health sells Rhapsody division for $205 million
Orion Health is selling its Rhapsody division to British investment company Hg for $205 million. Orion will then buy back a 25 per cent shareholding in the business for $28 million.
The company says the sale will have no impact on its customers’ day-to-day relationship with the Orion Health team.
Rhapsody is Orion Health’s integration engine and is an integral part of the company’s suite of applications used by health providers across New Zealand.
A statement to eHealthNews.nz says, “our Orion Health team will continue to work with customers as part of the Hg agreement.
“In the future there is every intention for the businesses to work very closely together ensuring there is a continuity of customer care across the businesses.”
Philippe Houssiau will step in to lead the Rhapsody business. Houssiau is formerly chief executive of Agfa Healthcare, chief executive of Alliance Medical and a senior partner with PwC.
Orion Health announced a strategic review focused on long-term shareholder value in April 2017, including the evaluation of any partnerships or minority investments.
Orion Health chief executive Ian McCrae says “we received strong interest in Orion Health’s business throughout the strategic review process and the board and I believe that Hg is the right partner to accelerate the expansion of Rhapsody and support our vision for Population Health.
“This investment provides Orion Health with a tremendous opportunity to deliver on our vision for customers, our people and for the healthcare sector.”
Hg will also buy a quarter share in Orion’s Population
Health business for $20 million.
Following the sale, Orion will undertake a share buyback offer at an estimated price of $1.24–$1.29 per share.
Orion Health will continue to own all its Hospitals business.