Tyro Payments (ASX: TYR) hopes to bolster its presence in the healthcare sector following the completion of a $22.5 million acquisition of digital health payments business Medipass.
Announced today, the agreement would see Tyro acquire 100 per cent of the Melbourne-based company, giving Tyro more exposure to the healthcare space following the COVID-induced rise of telehealth services.
Founded by Peter Williams, Medipass operates a digital health payment platform enabling healthcare providers to accept payments without the need for a terminal.
Over the past three years the health fintech has invested in building a multi-sided platform linking healthcare funders, healthcare providers and patients to streamline claims approval and payment acceptance.
Medipass currently integrates with 17 cloud-based practice management and booking systems and has approximately 4,400 active healthcare providers working with it, complementing the 9,300 merchants in Tyro's health vertical.
The fintech achieved a revenue run rate for the 12-months to end February 2021 of approximately $1.8 million and generated an EBITDA loss over that 12-month period of approximately $1.5 million.
Post-acquisition Williams and Medipass CEO Jonathan Davey will remain with the business.
"The rise of telehealth consultations, coupled with the increase in e-commerce and cashless payments more generally, means offering cardless digital payment options to patients is a commercial necessity for healthcare practitioners," says Tyro CEO Robbie Cooke.
"Medipass' functionality, deep insurer integrations and user-friendly simplicity are unique. By combining it with our existing card-present payment solution we can offer a simple, unified solution to healthcare practitioners for payments and claiming, as well as increasing the health providers working with us."
Once the purchase is complete Medipass will be integrated with Tyro's card-present health solution - bolstering its offering to receive both card-present and card-not-present payments.
Cooke says this will give the company's health merchants greater claiming and payment capabilities extending beyond Tyro's private health insurer and Medicare Easyclaim options to include a range of state and federal-based compensatory funders.
"Our combination with Medipass is a significant step in building out Tyro's core health vertical and is consistent with our strategy to build our offering through acquisition where there is a distinct opportunity to gain scale and enhance our position in a key vertical," says Cooke.
"In this case we saw a compelling opportunity to add the digital claiming and cardless payments capabilities developed by the Medipass team to provide a unified commerce offering to our healthcare practitioners providing enhanced payment and claiming options and simplifying payments in what is an extremely complex sector."
Total consideration for the acquisition of $22.5 million, comprised approximately 60 per cent cash and 40 per cent Tyro shares, with completion expected to occur this month.
Shares in TYR are up 3.80 per cent to $3.55 per share at 10.44am AEST.Never miss a news update, subscribe here. Follow us on LinkedIn, Instagram and Twitter.
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