MEDICINAL cannabis group Vitura Health has acquired telehealth services provider Doctors on Demand for $25 million.
The deal forms part of Vitura's strategy to become a more diversified digital health outfit, reported Business News Australia last week.
The buyout of the Brisbane-based Doctors on Demand is expected to be completed on 26 Oct, bringing to Vitura a digital platform that services about 280k patients a year.
Doctors on Demand, which was founded in 2015 by Brisbane pharmacists John Martin and John Neilson, provides telehealth, healthcare and related services to patients through a network of more than 120 medical practitioners via video conferences.
Vitura sees growth prospects in the sector with the adoption of telehealth services partly being driven by cost-of-living pressures and the constrained availability of doctors.
The company is also looking at boosting the service offering of the Doctors on Demand platform by providing patients access to purchase a range of medications following their consultations.
Under the acquisition agreement, Vitura is paying $18.75 million in cash to shareholders of Doctors on Demand and $6.25 million via the issue of 17.38 million Vitura shares priced at 35.96c each.
The cash component is being funded through existing reserves and a new debt facility of $6.25 million provided by ANZ Bank. JG
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