Medibank Private Limited (ASX:MPL) entered into share purchase agreement to acquire 49% stake in Myhealth Medical Holdings Pty Ltd from Crescent Capital Partners Management Pty Ltd and others on February 5, 2021. The expected consideration is AUD 63 million. Under the terms of agreement, Medibank is acquiring 49% of the ordinary shares of Myhealth Medical Holdings Pty Ltd, which represents a 33.4% economic interest in the Myhealth Medical Group when taking into account the interests of management and the local GP shareholders in Myhealth Medical Holdings Pty Ltd and its subsidiaries. if certain conditions are not met, Medibank may be required to acquire additional shares in Myhealth Medical Holdings Pty Ltd and pay additional consideration. The transaction will be funded entirely from existing cash resources. Medibank investment in Myhealth will support GPs to enhance the health and quality of life of their patients, which helps reduce high-cost hospital admissions and in turn alleviate pressure on the health system. GPs and Myhealth’s management will own the majority of the Myhealth group and continue to manage the day-to-day operations of the clinics. GPs will retain full clinical autonomy and each clinic sets its fees independently. Current doctor and management shareholders are retaining their shares in the Myhealth group and remain 100% committed to the company and their patients. Myhealth reported EBITDA of AUD 17 million in 2020. Both Medibank’s Chief Financial Officer Mark Rogers and Group Executive Healthcare & Strategy Andrew Wilson will join the Myhealth Medical Holdings Pty Ltd board. Medibank’s investment in Myhealth will also give Myhealth GPs access to additional capabilities to improve data analytics and information management and enable Myhealth to continue its rapid growth, with further expansion of its clinical footprint. The transaction is not conditional on further regulatory approvals. Transaction is expected to be completed by March 31, 2021. The transaction is expected to be immediately EPS accretive. Sandy Mak, Mark McCowan, Rommel Harding-Farrenberg, Stephen Price, Eugenia Kolivos, Helen Clarke and Nathaniel Popelianski of Corrs Chambers Westgarth acted as legal advisors for Medibank Private Limited. Macquarie Group Limited acted as financial advisor to Medibank. Medibank Private Limited (ASX:MPL) completed the acquisition of 49% stake in Myhealth Medical Holdings Pty Ltd from Crescent Capital Partners Management Pty Ltd and others for AUD 68.6 million on March 31, 2021.