Two of South Africa`s leading healthcare IT companies, PQ Africa`s QEDI and USKO`s MediSwitch, both active in the medical claims forwarding industry, are set to merge to form an internet healthcare and e-commerce partnership with the potential of changing the face of healthcare IT in South Africa for the better..
The proposed merger will see PQ Africa and USKO each holding a 40% shareholding in the soon to be renamed entity. Private hospital and doctor network Netcare and healthcare funder Fedsure Health share the remaining stake.
Subject to approval by the Competition Commission, the merger will combine QEDI`s strength in the private practitioner market with MediSwitch`s track record in the pharmacy industry to exploit what PQ Africa CEO Peter Watt calls "obvious and natural synergies" in South Africa`s rapidly-growing managed healthcare industry. "When we examined the two businesses it was abundantly clear to us that their combination would not only get rid of unnecessary duplication in service offerings, but it would establish a compelling product offering and a formidable capacity to serve the managed healthcare IT market, " said Watt: "we believe the improved efficiencies will benefit the consumer - the combined IT capability and solutions of the merged businesses must assist in curbing the spiraling costs of healthcare."
USKO`s Executive Chairman David Redshaw is equally optimistic, and referred to the transaction as "an important threshold for the health of the health IT sector in South Africa and an exciting development for the new entity`s shareholders". Redshaw believes the deal will open up significant new e-commerce markets within South Africa and the sub-continent for the partnership. "We`re committed to ensuring the new business is well-funded and that it retains the experience of skilled executives from both sides. The underlying and inherent relationships and partnerships will make for a strong leading-edge business," said Redshaw.
QEDI`s service track record and ability to handle masses of sensitive data are its strongest assets, says Watt: "we will see to it that the transaction goes ahead with minimal disruption to current service levels, and with an unqualified commitment to the integrity of claims conveyance and data management, because we know that these matters are central to the expectations of our customers."
The merged company will continue to focus on providing solutions that support information-intensive processes in the healthcare environment. Healthcare professionals will be able to access knowledge management software solutions, expert services and content from a single supplier.
Redshaw said that while plans were well advanced, no final organisation structures had yet been put in place, and it is expected that matters such as managerial control, corporate identity and integration of staff complements would be first on the agenda of the restructured entity`s board. "It is imperative for stability and morale that we achieve clarity on these issues as soon as possible," he said ENDS
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PQ Africa
PQ Africa was formed as a result of the merger of Persetel Holdings Limited and Q Data. JSE listed Comparex Holdings Limited has a 50% minus one share interest in PQ Africa. The black empowerment group NITAC (the National IT Acquisition Consortium), led by Real Africa Holdings Limited, holds a controlling interest of 50% plus one share in PQ Africa.
PQ Africa is the leading provider of competitive, innovative and flexible e-business solutions based on Information and Communications Technology ("ICT"). These comprehensive solutions include systems integration, consulting, package implementation, software development, outsourcing, hardware, software, peripherals, voice, video and data communication systems, customer relationship management solutions, and networking equipment and services. Internet solutions include the development and deployment of electronic commerce, electronic data interchange-based solutions and digital authentication.
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