[Nigeria] Interswitch acquires 60% stake in healthcare technology startup e-Clat
Nigeria’s leading e-payments company Interswitch has acquired a majority stake in healthcare technology startup e-Clat. The deal was completed on September 30, 2019, and it involves Interswitch acquiring a 60% stake in e-Clat through the purchase of shares from current shareholders and subscription to new shares issued by the company.
Commenting on the acquisition, Mitchell Elegbe, Founder and Group Managing Director/Chief Executive Officer of Interswitch, said “We are a technology company that is innovating to deliver value across sectors that are critical to Africa’s social and economic development, our acquisition of e-Clat demonstrates strong progress along this strategy and alignment with our corporate vision.”
e-Clat was founded i 2012 and specializes in assisting healthcare service providers in planning, designing and operating their unique practices through the deployment of its bespoke healthcare technology platform, designed specifically for the healthcare environment in Africa. e-Clat’s healthcare technology platform, consists of a core e-Clinic software (including electronic billing, immunization, ante-natal and care pathway functions), as well as a variety of additional specialist modules. Prior to the acquisition, e-Clat’s platform had become a leading Electronic Health Record (EHR) platform used in over 250 public and private healthcare facilities in Nigeria.
Nigeria’s healthcare system currently lacks adequate funding and a national framework, leading to operational inefficiencies. Interswitch’s strategic investment in healthcare technology aims to address these challenges by modernising the healthcare sector in Nigeria and eventually in Africa through its innovative products and services. The combined product offerings of Interswitch and e-Clat are expected to, amongst other things, enable operators in the healthcare sector develop new capabilities, improve the efficiency of their core operations and facilitate seamless payments.
Dr. Wallace Ogufere co-founder/CEO of e-Clat Healthcare Limited stated “The growing adoption of value-based care, combined with the increasing level of usage of patient portals across the industry, has made it critical to take a new approach to patient engagement solution design in Nigeria. We expect to tightly integrate the e-Clat capabilities into the Interswitch platform, adding functionality that would enable providers to reach their entire patient populations by leveraging existing patient contact information”.
This new acquisition by Interswitch represents the latest of several strategic investments executed by the company to enhance Interswitch’s product and service offering and expand its reach into new markets as the payments technology sector in Africa expands rapidly. In 2016, Interswitch acquired the mobile financial services player, VANSO. Interswitch had earlier closed the acquisition of Paynet Group in February 2015 in a deal that resulted in the creation of a combined network of over 100 financial institutions, deepening Interswitch’s footprint in East Africa. Interswitch intends to continue with its expansion strategy whilst refining its offering, creating innovative payments solutions that are tailored to the demands of the African market. The acquisition of e-Clat Healthcare Limited is expected to further enhance Interswitch’s capability to provide comprehensive solutions that involve making payments a seamless part of everyday life across critical social sectors in Africa.