We are delighted to announce the completion of Hg’s acquisition of Rhapsody and a 24.9% stake in Orion Health’s Population Health Management business. Orion Health retains a 24.9% investment in the Rhapsody business and remains a majority owner of its Population Health business at 75.1%. Orion Health will continue to own 100% of our Hospitals business.
This is a significant milestone for Orion Health, signalling the next chapter for the company, in its goal to become a global technology leader in Population Health, while laying the foundations for precision medicine, which the company believes will transform the healthcare sector.
Orion Health’s partnership with Hg, a specialist technology investor with deep healthcare expertise, delivers a combination of investment and a global network to Orion Health. It also provides a stronger platform for Orion Health to continue to deliver long-term value to our customers, enabling the company to focus on the Population Health business and build on its global growth.
We have achieved a significant milestone today with Hg’s acquisition of Rhapsody and investment in Population Health. Hg is a deeply knowledgeable and globally connected investor in healthcare technology, which gives Orion Health enormous leverage in the healthcare technology market.
We are immensely proud of the Rhapsody technology our engineers have built and supported over the years and couldn’t be more excited for the team globally and the opportunity they will have to accelerate the growth of the business. We remain committed to the Rhapsody business, not only as an ongoing shareholder but also as a partner and reseller, working closely together with Hg in the transition and its future growth. Orion Health has spent the past year reconfiguring the company for success and turns its attention to the next chapter of stabilising and growing the Population Health and Hospitals businesses.
Commenting on the investment, David Issott, Partner at Hg said, “Interoperability and data liquidity are major issues in healthcare technology worldwide,”. “Rhapsody has been built over the last 20 years to provide the solution. It is a world class product, used by over 460 clients, in almost every major healthcare market in the world. By partnering with the Rhapsody team we will accelerate its growth by investing in its products, capabilities and service levels.”
In addition, we are delighted to be co-investing in Population Health whose innovative products help health economies deliver high quality and targeted care within tight fiscal constraints,” Issott said.
With a focus on developing tools and technology for healthcare organisations, we are placing the patient and quality of care at the centre of everything we do. Last month we launched Amadeus CORE, a next-generation data store for healthcare organisations to take a first step in their data journey towards harnessing big data. Embracing healthcare organisations’ shift to the cloud, Orion Health recently became an Amazon Web Services (AWS) Advanced Technology Partner, migrating a number of significant customers in the U.S. to the cloud. As we increase the momentum of innovation, we look forward to sharing details of our product roadmap.
Evolving Orion Health, we now have an opportunity to harness the global digital health market with the company’s primary focus on Population Health. I believe that this focus on Population Health and laying foundations for precision medicine will see Orion Health through its next chapter as one of New Zealand’s top export technology companies.
For more information on the Hg Transaction and the Share Buyback, please visit our Investor Centre here.