Highlights:
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Careteq to merge its Ward MM business with Mederev in a JV to be called Embedded Health Solutions and create one of Australia’s largest aged care medication management businesses
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Careteq will have a 55% controlling stake in the JV and will have the ability to cross-sell its Sofihub and Strong Care platform solutions to an additional ~22K beds
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The transaction will also provide greater economies of scale to the JV partners in an industry where scale is an important competitive and financial advantage
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The JV is forecast to generate an annual EBITDA of $1.5-2M within 12-18 months once synergies are realised (Ward MM’s FY22 EBITDA: $370K)
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There is no cash associated with the transaction and the JV will be profitable from year one (will not require a capital injection from Careteq)
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The combined resources of the merged business will place it in a strong position to meet the evolving aged care requirement for embedded medication management and quality use of medicines solutions and on-site pharmacist time
Careteq Limited (ASX: CTQ, “Careteq” or the “Group”), is pleased to announce that it has formed a joint venture (JV) entity to be called Embedded Health Solutions with Mederev Pty Ltd (Mederev) that will significantly enhance the operations and profitability of the Group.
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