Orion Health Group Ltd said HgCapital LLP agreed to invest in the company's Rhapsody and Population Health businesses.
Under the deal, entities managed by Hg will acquire majority ownership of Rhapsody for NZ$205 million and invest NZ$20 million in Population Health in exchange for a 24.9% equity stake.
The New Zealand-based health technology company will retain 100% ownership of its hospitals business.
As part of the agreement, Philippe Houssiau will lead the Rhapsody unit. Houssiau was formerly CEO of Agfa Healthcare, as well as Alliance Medical Group Ltd.
Following completion of the Hg transactions, Orion will implement a share buyback of its shares priced at the range of NZ$1.24 to NZ$1.29 apiece.
The deal is subject to conditions, including regulatory approval of the Hg investments and shareholder approval of the proposed share buyback.
Orion Health will use about NZ$28 million of the proceeds from the Rhapsody transaction to buy a 24.9% stake in the unit and NZ$12 million to invest in its Population Health business. The remaining proceeds, together with NZ$30 million net cash, is allocated to fund the company's ongoing operations.
London-based Hg Capital is an investment management company, with focus across the technology, services and industrial technology sectors, mainly in Europe.
Rhapsody is an integration engine for health data, while Population Health is a platform that integrates health data.