Commonwealth Bank is ramping its presence in the health payments market after acquiring online healthcare marketplace, Whitecoat.
While the bank did not say how much it paid for the business, disclosures by major shareholder NIB Holdings strongly indicate the sale price was around A$30 million.
CBA already held a 13 per cent stake in Whitecoat through its staff health fund, but moved to full ownership on Monday after buying out stakes held by NIB, BUPA and chief executive Matt Donnellan.
NIB’s 31.7 per cent stake in Whitecoat had a paid up value of $3.85 million before the sale was inked.
However NIB told the ASX that it would book a $9 million pre-tax gain on the sale of its interest, which means it fetched total proceeds of $12.9 million on the transaction.
Whitecoat provides online consumers with access to 300,000 healthcare professionals across Australia who can find, book and pay for services through a proprietary mobile app.
CBA is banking on Whitecoat to help it break National Australia Bank’s longstanding grip on the health payments market.
NAB, which has built its domination through its HICAPS subsidiary, processed more than 80 per cent of private health claim payments in 2017 but its share has been eroded by Whitecoat and other digital payments providers.
CBA senior executive Mike Vacy-Lyle said Whitecoat would be migrated to the bank’s business division when the merger was completed.
“Australia is fortunate to have one of the world’s best healthcare systems and we want to ensure it is supported by the best payment systems,” Vacy-Lyle said.
“By integrating Whitecoat into CBA, we are seeking to provide the best integrated digital solution in the market.
“It will see us differentiate our customer proposition in the healthcare sector and is well aligned to our aspiration to grow in business banking.”
Whitecoat was chaired by former NAB chief executive Cameron Clyne.
In an interview with Banking Day in 2017, Clyne described the business as “the TripAdviser of health care in Australia”.