MedAdvisor Nets $42.35M from ANZ Sale, CFO to Exit by October
MedAdvisor Limited has finalized the sale of its Australian and New Zealand operations to Jonas Software for an estimated $42.35 million, marking a strategic pivot towards its US business. The company also announced upcoming CFO changes as it refocuses its growth trajectory.
- Sale of ANZ business and IP to Jonas Software for $42.35 million including earn-out
- MedAdvisor’s US operations to continue under royalty-free license
- Full repayment of $23 million finance facilities
- CFO Ancila Desai to step down, replacement appointment underway
- Strategic review ongoing with focus on maximising US business value
Transaction Completion and Financial Details
MedAdvisor Limited has officially completed the sale of its Australian and New Zealand business division, including key intellectual property and its UK investment, to Jonas Software AUS Pty Ltd. The transaction, announced after market close on 4 July 2025, is valued at approximately $42.35 million. This figure includes an upfront payment of $27 million, a holdback amount of $8 million subject to post-completion adjustments, and an estimated earn-out of $7.35 million over three years based on performance.
The sale encompasses MedAdvisor’s main Australian operating entity, MedAdvisor International Pty Ltd, and its subsidiary Medicines Information Pty Ltd, along with the brand name "MedAdvisor". Jonas Software, a portfolio company of Canadian giant Constellation Software Inc, will now operate the ANZ business as a private software company, continuing its legacy of delivering digital solutions to community pharmacies.
Strategic Shift and US Business Focus
With the divestment of its ANZ operations, MedAdvisor Solutions will sharpen its focus on the US market, where it continues to operate under a royalty-free license agreement with Jonas. CEO Rick Ratliff emphasized confidence in the US platform despite near-term market headwinds, highlighting strong client relationships and strategic investments aimed at long-term growth. This transaction marks the completion of the first phase of MedAdvisor’s strategic review, initiated in November 2024, with ongoing evaluation of options to maximise shareholder value in the US business.
Leadership Changes and Financial Position
In conjunction with the sale, CFO Ancila Desai announced her intention to step down, with her final day anticipated to be 3 October 2025. The company is actively progressing the appointment of a new CFO based in Australia to lead MedAdvisor Limited’s financial operations moving forward. Additionally, MedAdvisor has fully discharged its finance facilities with Partners For Growth, repaying approximately A$23 million, strengthening its balance sheet post-transaction.
Industry and Market Implications
Jonas Software’s acquisition aligns with its strategy of building vertical market software businesses that provide mission-critical solutions. The integration of MedAdvisor’s ANZ business is expected to enhance Jonas’s footprint in the digital health space, particularly in pharmacy-driven patient engagement. For MedAdvisor, the divestment allows a more concentrated effort on the US market, which represents a significant growth opportunity given its extensive pharmacy network and AI-enabled platform.
Investors and analysts will be watching closely as MedAdvisor navigates this transition, with a live webinar scheduled for 8 July 2025 to discuss the sale and strategic review in more detail.
Bottom Line?
MedAdvisor’s ANZ exit clears the path for a US-centric growth strategy, but execution risks remain.
Questions in the middle?
- How will MedAdvisor’s US business perform amid ongoing market headwinds?
- What impact will the CFO transition have on financial strategy and investor confidence?
- How will the earn-out payments from Jonas Software influence MedAdvisor’s future cash flows?
