Interswitch Limited, a Nigerian company that is focused on the digitization of payments in Nigeria and other African countries, has announced its acquisition of e-Clat Healthcare Limited, a Nigeria-based health technology company that aims to improve healthcare delivery in Africa. The deal involves Interswitch acquiring a 60% stake in e-Clat.

The terms of the deal are such that the 60% of shares to be acquired by Interswitch will be through the purchase of shares from current e-Clat shareholders and subscription to new shares issued by the HealthTech company.

“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. Healthcare is rapidly evolving towards new, integrated and scalable models of care delivery that put the consumer at the centre. At the core of Interswitch’s expansion into healthcare is our ambition to provide customers with greater access to healthcare across different interaction points beyond hospitals, such as at pharmacies and primary health care facilities, providing much needed services to patients across Nigeria and, in the future, in Africa. It also represents an opportunity to introduce a number of Interswitch’s products, such as our Verve Health cards, as well as our payment collection & disbursement solutions (Quickteller for business), that will drive much needed efficiency in payments for health services across the value chain," said Mitchell Elegbe, Founder and Group Managing Director/Chief Executive Officer of Interswitch.

Interswitch and e-Clat directors at the signing and announcement of the acquisition.

Sensible acquisition

Considering that Interswitch is mainly a payments technology company, their acquisition of a controlling stake in e-Clat is sensible. Founded in 2012, e-Clat Healthcare Limited specializes in technology that helps healthcare service providers digitize their operations. Specifically assisting them in planning, designing and operating their unique practices through the deployment of its bespoke healthcare technology platform.

In this episode of The Tefo Mohapi Show, Bankole Oluwafemi talks about how Interswitch was once too slow to innovate and eventually engaged Nigerian developers and started becoming an innovative FinTech company.

“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," said Dr. Wallace Ogufere co-founder/CEO of e-Clat Healthcare Limited.

Another reason why the acquisition is a good one by Interswitch is that the FinTech company has recently been making several strategic investments.

In 2016, they acquired the mobile financial services player, VANSO. Interswitch also acquired 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. As such, the acquisition of e-Clat is expected by Interswitch 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.

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