Australian telehealth provider My Emergency Doctor has acquired fellow Australia-based telehealth provider GP2U for AUD 3 million (USD 2 million). My Emergency Doctor purchased GP2U from UK-based Doctor Care Anywhere Group for AUD 500,000 (USD 333,200) in cash and AUD 2.5 million (USD 1.7 million) worth of stock. The deal is subject to shareholder approval and is expected to close by the end of June 2023.

Through the acquisition, GP2U will become a part of My Emergency Doctor’s offerings. The company notes the sale was carried out in order for the company to exit the Australian market and focus on its UK-based operations.

My Emergency Doctor is a listed Australia-based telemedicine provider that offers virtual consultations with emergency doctors via telephone and online consultations. The platform provides emergency consultations with regard to conditions such as respiratory conditions, allergic reactions, acute pain, chronic pain, infections, injuries, and fainting. The company operates on a D2C basis, consulting with patients directly for a fee, while also working on a B2B2C basis, where it works with healthcare providers to consult with patients and free up emergency room services. 

GP2U is an Australia-based telemedicine provider that offers virtual consultations, prescriptions, specialist referrals, and medical certificates. The platform provides general practitioner consultations at a fee, as well as specialist consultations for behavioral health, weight loss, alcohol and drug abuse, chronic conditions, and sexual health. 

Analyst QuickTake : Originally, Doctor Care Anywhere Group acquired GP2U in September 2021 for AUD 11 million (USD 7.34 million) a price reflecting 2.5x the company’s unaudited gross revenue. The sale of GP2U is the first step in the company’s plan to exit the Australian market and notes that once the sale is completed, the company will shift to a UK-based board. This shift back to the UK market is likely due to the company’s tumbling share price, reflecting a lack of faith from investors in the ability of the company to achieve aggressive revenue targets (37% YoY growth projected to an industry forecast of 22% YoY) with a tight cash runway. Additionally, the company has recently had several prominent management changes with its CFO both stepping down and its CEO being replaced twice within a year.