Wrap Text
CareCross acquisition by MMI
MMI Holdings Limited Group
Incorporated in South Africa
(Registration number 2000/031756/06)
JSE share code (primary listing): MMI
NSX share code: MIM
ISIN NO.: ZAE000149902
“MMI Holdings” or the “Company”
CareCross acquisition by MMI a perfect strategic fit in healthcare
innovation
MMI Holdings has announced that it has acquired, subject to
relevant regulatory approval, the CareCross Health Group,
including a majority share in Occupational Care South Africa
(OCSA). The acquisition fits perfectly with the strategy of other
group entities, including Metropolitan Health, the newly acquired
Guard Risk and Hello Doctor, in their quest for developing
innovative solutions that create affordable access to quality
healthcare.
The acquisition specifically complements Metropolitan Health’s
current offering, further enhancing their ability to reduce
healthcare costs and improve outcomes by coordinating services
across the health value chain - particularly through the provision
of primary health care services, managing access to specialist
products and controlling the chronic medicine value chain. The
acquisition is also expected to generate synergies between OCSA
and Metropolitan Health’s existing workplace wellness capability –
Metropolitan Wellness.
Since inception in 1998, CareCross has focused on delivering
affordable healthcare through provider networks. The company, with
a national network of around 2 000 General Practitioners and 4 000
associated healthcare professionals such as specialists, dentists
and optometrists, currently delivers managed care and
administration services to approximately 200 000 medical scheme
beneficiaries.
OCSA is widely considered a market leader in workplace health and
wellness solutions. Through a joint initiative with OCSA,
CareCross delivers integrated occupational health solutions to
approximately 55 000 workers nationally.
Metropolitan Health manages health benefits for 3 million
beneficiaries. The company successfully leverages economies of
scale, a proprietary technology platform and integrated health
risk management to reduce healthcare and non-healthcare costs for
their clients.
MMI CEO, Nicolaas Kruger, says "the acquisition of Carecross is an
important milestone. It extends our ability to offer holistic
solutions to our existing and prospective clients, further
reinforcing our commitment to client centricity. This transaction
is also in line with MMI’s strategy to grow through
diversification".
Metropolitan Health CEO, Blum Khan, believes that, in addition to
strengthening and complementing their current suite of services,
the acquisition “aligns perfectly with our goals for profitable
growth and pioneering the pursuit of innovative solutions that
expand access to quality healthcare.”
Group Chairman for the CareCross Group, Ian Black, believes the
acquisition will be seamless for clients and ultimately of
significant benefit to the clients of both companies. “CareCross
has pioneered some unique delivery models. With the weight of a
major market player and the synergies the acquisition will
generate, there is now opportunity to fully leverage the potential
of these unique capabilities,” says Black.
Founder and Managing Director of CareCross, Dr Reinder Nauta,
indicates that CareCross has always been synonymous with creating
access to affordable healthcare – a passion which Metropolitan
Health shares. Nauta continues, “This acquisition brings together
companies who share a common vision and gives great impetus to the
search for innovative solutions that improve access to quality
healthcare, on a sustainable basis.”
It is envisaged that the acquisition, will provide the current
CareCross and OCSA clients with access to Metropolitan Health
initiatives, such as an in-pharmacy clinic venture with the Alpha
Pharm franchise group, Hello Doctor services and the Multiply
Rewards programme.
Khan concludes, “South African healthcare needs to move from a
system of sickcare to healthcare, against a backdrop of severe
resource challenges. The acquisition further strengthens our
ability to actively contribute to this transformation and create a
healthcare ecosystem that connects all South Africans to
affordable, quality healthcare.”
ENDS
*Tweets:
• MMI Holdings acquires the CareCross Health Group as part of its
growth through diversification strategy.
• CareCross acquisition is perfect fit with Metropolitan Health
strategy for improving access to affordable, quality healthcare.
ISSUED BY: Roxanne Leibrandt, Ogilvy PR, Cape Town
Tel: +27 21 467 1133 Cell: +27 76 826 8333 Email:
roxanne.leibrandt@ogilvy.co.za
ON BEHALF OF: MMI Holdings
18 June 2014
Sponsor:
Merrill Lynch South Africa (Pty) Ltd
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