International suitors in mix for Affinity Equity’s Medical Director

Medical Director’s software is used by more than 20,000 clinicians each year and its platform processes over 70 million patient consultations.

Affinity Equity Partners is understood to be in talks with at least one group out of Europe or the United Kingdom to buy its Medical Director business.

The understanding is that a small number of both international private equity and trade buyers have been approached about an acquisition of the business that is understood to generate about $30m in annual earnings before interest, tax, depreciation and amortisation.

Medical Director has been earmarked for sale since about 2019 when advisory firm Jefferies Australia was hired by Affinity. However, COVID-19 is thought to have held up plans for a divestment.

Earlier, the thinking had been that the business could sell for about 15 to 20 times its earnings, although the global pandemic may have impacted performance.

It is understood that a sales process involving a small number of select groups is in the preliminary stages.

Earlier, it was thought Telstra could take an interest as it looks to add to its health unit.

Medical Director’s software is used by more than 20,000 clinicians each year and its platform processes over 70 million patient consultations.

The company has a contract with the NHS in Britain to provide its Helix cloud software to UK-based general practitioners.

Medical Director provides software for electronic health records, patient management, billing, scheduling, care co-ordination, medicines information, clinical content and population health management services for general practitioners and specialists in the healthcare industry.

It employs about 230 people and has its headquarters in Sydney.

Affinity Equity is known for commanding top dollar for the companies within its portfolios.

It bought Medical Director in 2016 for $155m from Healius, then named Primary Health Care.

This year it secured an eye-watering $1.3bn for its Australian ticketing company that owns Ticketek, TEG Group.

It also sold its 35 per cent stake in the Velocity frequent flyer program to Virgin Australia in 2019 for $700m, valuing the overall business at about $2bn.