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QEDI, MediSwitch to merge

Healthcare IT companies QEDI and MediSwitch, owned by PQ Africa and Usko respectively, are set to merge to form an Internet healthcare and e-commerce partnership.

PQ Africa and Usko will each own 40% of the new company, which is to be renamed, while private hospital and doctor network Netcare and healthcare funder Fedsure Health will share the remaining stake.

Usko executive chairman David Redshaw says final organisation structures have not yet been put in place, but he expects that managerial control, corporate identity and the integration of staff complements will be first on the agenda of the new entity`s board.

The deal is subject to due diligence exercises and Competition Commission approval.

Redshaw adds that the transaction is "an exciting development for PQ Africa and Usko in the health sector" and will open up significant new e-commerce markets in SA and the subcontinent.

The parties are committed to ensuring the new business, which will continue to focus on providing solutions that support information-intensive processes in the healthcare environment, is well funded, he says.

The merger is set to combine QEDI`s relationships with private practitioners and MediSwitch`s track record in the pharmacy industry.

"When we examined the two businesses it was abundantly clear to us that their combination would not only get rid of unnecessary duplication, but it would establish compelling product offerings and a substantial capacity to serve the managed healthcare market," says PQ Africa CEO Peter Watt.

"We will see to it that the transaction goes ahead with minimal disruption to current service levels, and with an unqualified commitment to the integrity of claims conveyance."

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