Dr Foster bought by Oz telecoms firm

Dr Foster Intelligence has been bought by Australian company Telstra Health, nearly a decade after its launch.

The health informatics company, formed through a joint venture with the government, announced today that it has been acquired by Telstra Health, a provider of electronic health solutions and a division of Australian telecommunications company Telstra.

While neither company has revealed the cost of the acquisition, the Sydney Morning Herald has quoted "market sources" as indicating the deal's value as between £20 million and £25 million.

Dr Foster Intelligence was established in 2006 as a joint venture between what was then the NHS Information Centre and Dr Foster Holdings LLP. The NHS Information Centre transferred its shareholding to the Department of Health on 9 July 2010.

In November 2010, the company announced that it was to be sold following a review of strategic options for the business, but no buyer had been found until now.

Telstra Health had previously secured the exclusive rights to provide Dr Foster products and services in Australia in December 2013, with contracts now in place with 15 hospital services in Australia.

Shane Solomon, Telstra Health’s managing director, said the Dr Foster acquisition was the “logical next step” following the partnership and will provide the larger company with “cutting edge analytical capability”.

“Health analytics is a key ingredient to improving efficiency, safety and outcomes for patients, providers and health insurers. The acquisition of Dr Foster aligns with Telstra Health’s strategy to create a truly connected health care system and become a leading provider of integrated e-health solutions.”

Solomon said Telstra Health is committed to building Dr Foster in its established Australian and UK markets, while also “exploring more global opportunities and ways we can integrate the product with other e-health solutions to create a connected system”.

Roger Taylor, Dr Foster’s co-Founder and director of research and public affairs, described the acquisition as a “really exciting development” for the company.

“Telstra Health brings the resources, scale and expertise to help us take the company forward and maximise the opportunities that an information driven health system can provide for patients.”

The HSJ reported that the company’s brand will not be altered, while staff will continue as Dr Foster employees instead of being absorbed into Telstra.

There are also no redundancies planned, although Tim Baker, Dr Foster’s chief executive, had finished at the company today by “mutual agreement”.

Baker’s replacement is Adrian Nowitzke, Telstra’s head of health informatics and a practising surgeon, who will become Dr Foster’s management director.