Primary Health Care has agreed to sell its Medical Director business to Affinity Equity Partners for $155 million as part of the group's strategic review.
Medical Director - formerly known as Health Communication Network or HCN - provides clinical and business software to general practitioners, medical specialists and other health professionals. It captures more than 60 million patient consultations annually.
"The successful sale of Medical Director, at an attractive multiple, delivers on one of the key capital recycling initiatives from the strategic review," managing director Peter Gregg said in a statement on Tuesday.
"Through the progressive execution of these initiatives, we are creating the flexibility to strengthen our balance sheet and to fund future growth from the existing capital base," he said.
Primary will continue its partnership with Medical Director, as a long-term customer utilising its existing products and services.
"Importantly, Primary has also secured in-principle agreement with Medical Director for the development of, and access to, next generation clinical and practice management software solutions," Mr Gregg said.
Sam Johnson, managing director of Australia and New Zealand at Affinity, was upbeat about Medical Director's future, given the growth in the global healthcare technology industry.
The sale - which remains subject to some conditions, including approval from the Foreign Investment Review Board and third party consents - is expected to be completed before the end of fiscal 2016.
Proceeds from the sale, together with the proceeds from the Barangaroo property, cuts Primary's net debt to approximately $900 million.
Primary Health shares were down 1.5 cents at $3.785 in a lower Australian market at 1038 AEDT.
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