ASX-listed health vertical integrator IBA Health this week announced a strategic alliance with UK-based InHealth Group, a major company in the European market.
InHealth Group will pay IBA an up-front consideration of 5.2 million British pounds ($A14.5 million), including a payment of one million pounds ($A2.8 million) for licence fees, to become IBA's exclusive channel partner in the UK and Ireland.
According to an IBA press statement, InHealth will "assume responsibility for the sales, project delivery and support of IBA's existing UK customers" by acquiring IBA's wholly owned UK subsidiary which will now be called InHealth Solutions.
"IBA will retain ownership and all rights to its software and intellectual property, and will maintain a presence in the UK for product development and support," the press statement said.
IBA executive chairman Mr Gary Cohen said, "IBA will continue to invest in product development to meet the growing demand for our solutions, which we anticipate will be enhanced as a result of our alliance with InHealth Group. This move will also free us up and allow us to look at other international markets for our products."