nib (ASX:NHF) finalises sale of Whitecoat to CBA

Company News

by Michael Luu

Financial giant Commonwealth Bank (ASX:CBA) has finalised the transaction for online healthcare directory Whitecoat from health care fund nib Holdings (ASX:NHF).

The $2.8 billion health care insurance company established the digital platform connecting patients with healthcare professionals and services in 2013.

The project developed into Australia’s biggest information database of healthcare providers, showcasing over 325,000 listings of medical services and reaching over 15 million subscribers. The website has also tapped into the New Zealand market.

The directory platform currently holds partnerships with medical insurers CBHS and Bupa to assist customers in selecting the most suitable healthcare services.

The website’s administrators consider the takeover by CBA as a boost to Whitecoat’s financial mechanism, as the big-four bank is capable of facilitating better payment and claim processing solutions for healthcare seekers.

Whitecoat largely sources funding from healthcare provider clients. Nib holdings believes the transaction is in the best interests of the platform’s growth, as the nib Managing Director Mark Fitzgibbon said, “It will also bring the level of investment required to further develop Whitecoat’s technology.”

The sale is estimated to lift nib Holdings total earnings before tax to $9 million.

Shares in nib Holdings (ASX:NHF) are trading 0.5 per cent higher at $6.28

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