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IBusiness has teamed up with ehealthcareasia to offer Internet-based medical services across Asia in a deal valued at HK$120 million.

Under a memorandum of agreement ehealthcareasia will buy iClaims21, a joint venture in which iBusiness subsidiary i21 has a 70 per cent stake. IClaims21 develops software for processing medical claims via the Internet.

The consideration will be settled by the issue to investors in iClaims21 and i21 of HK$80 million in new shares in ehealthcareasia valued at 25 HK cents each - a discount of 15.2 per cent to Friday's closing price.

Ehealthcareasia was suspended yesterday pending the announcement of the agreement.

The remainder will be settled by the issue of HK$40 million in convertible notes maturing in three years. The notes have a conversion price of 40 HK cents and a coupon rate of 2.5 per cent.

E-commerce service provider iBusiness will introduce business partners and customers to ehealthcareasia through its shareholders' marketing channels.

IBusiness is 75 per cent owned by Cheung Kong (Holdings) and Hutchison Whampoa with HSBC and Hang Seng Bank owning the remainder.

'It is important for us to have strategic partners to cover all the opportunities that exist,' said ehealthcareasia chairman Brian O'Connor.

Application solutions provider Excel Technology International Holdings - the other shareholder in i21 - will provide ehealthcareasia with a software package to provide medical insurance schemes on the Internet.

The two companies said teaming up would avoid duplication of software development.

'Consolidating the technology was very important,' said ehealthcareasia chief executive Sam Abunassar.

After the issue of shares Quality HealthCare Asia will hold 53.9 per cent of ehealthcareasia with shareholders in iClaims21 and i21 having a combined 10.9 per cent stake.

On full conversion of the convertible notes Quality HealthCare Asia will hold 52.1 per cent.

Ehealthcareasia provides software solutions to the medical sector to deal with claims and administration in Hong Kong, Singapore, Taiwan and Australia.

The company plans to expand into other countries in the region including China.



Medical-software makers team up in $120m deal