Medibank acquiring 33.4% economic interest in Myhealth Medical Group

Medibank Pvt. Ltd. is acquiring a noncontrolling 33.4% economic interest in Myhealth Medical Group for A$63 million.

The target is an operator of primary care clinics, with a network of 86 clinics in New South Wales, Victoria and Queensland.

Medibank will buy 49% of Myhealth Medical Holdings Pty. Ltd.'s ordinary shares, representing a 33.4% economic interest in the Myhealth Medical Group. Myhealth's management and physicians will retain majority ownership of the group and continue to manage the day-to-day operations of the clinics.

Medibank CFO Mark Rogers and Group Executive for Healthcare and Strategy Andrew Wilson will join the board of Myhealth Medical Holdings.

The transaction is expected to be completed by March 31. Medibank will fund the acquisition from existing cash resources.

The Myhealth group is expected to deliver EBITDA of about $21 million in fiscal year 2021. The transaction is expected to be immediately accretive to EPS.