1ST bags deal to consolidate market share
1st Available (ASX:1ST) has continued its quest to become the one online health service provider to rule them all – closing in on a deal which adds 130,000 users to the deck.
In a note to its shareholders today it said that it would move to acquire OzDocsOnline (ODO) for $150,000.
In exchange, 1ST will acquire an online booking service which is used by 130,000 patients and 8000 doctors.
OzDocsOnline is an online booking service which makes revenue by offering patients online access to their own doctor’s services including: online prescription requests; online access to pathology results; online consultations; and online referrals.
The doctors charge patients a flat fee to use each service.
In the 2016 financial year OzDocsOnline took in $310,000 in revenue, with $63,000 of that retained by the company while the rest was distributed to the doctors.
For 1ST, the deal is the latest of a string of deals completed in the last year including the acquisitions of DocAppointments, Clinic Connect, and GObookings.
1ST is attempting to build a hub to connect doctors and patients through a dedicated online portal and suite of apps, consolidating what is currently a fragmented market.
1ST managing director Klaus Bartosch said the deal made sense for both parties.
“Smaller players such as OzDocsOnline struggle to invest in their platforms to provide a future for their customers,” he said. “Not only does this acquisition provide a great future product roadmap for OzDocsOnline customers, but also new opportunities to help grow and manage their businesses.”
“It also helps expand our GP market share, growing our revenue base, consumer base and providing valuable IP (intellectual property).”
The deal is still subject to due diligence so it is not absolutely guaranteed at this stage – investors should seek professional financial advice before deciding whether or not to invest.