Health merger rationalises local IT sector

THE rationalisation of WA’s IT sector has started with Working Systems Solutions moving to take control of fellow Perth company CHROME Global in an asset transfer deal worth an estimated $1.5-$2 million.

The move will leave Working Systems as a health focused company, transferring its non-health related businesses and assets to CHROME Global as consideration for the issuing of a controlling number of shares in CHROME.

Working Systems will provide a line of credit to CHROME Global of up to AUD$2 million for future development and growth.

Working Systems will also take board control of CHROME which will remain a separate listed company, with Kevin Baum at its head, if its shareholders approve the deal.

The non-health related assets to be transferred to CHROME Global include:

* Shares in Wordmaker Design Pte Ltd, a Singapore-based branding and integrated marketing communications business;

* Shares in Uni-U International Pty Ltd, a provider of syndicated educational content and online learning environments to universities and corporates;

* Working Systems’ e-services consulting and non-health software development division;

* Working Systems’ proprietary software messaging product, e-switch;

* The rights to distribute Working Systems’ health related products, comprising a full range of healthcare management systems.

Working Systems chief executive officer John Wreford said the transaction provides Working Systems with an excellent opportunity to further maximise both its traditional health business and its growing presence in the e-services sector.

“Currently, Working Systems’ existing health related businesses and assets are represented by some 265 hospitals and day surgeries that use our enterprise products,” Mr Wreford said.

“Working Systems is focused upon growing its business in the rapidly expanding health markets in Asia, the Middle East, Australia and New Zealand, and we are well advanced in discussions with a number of business and distribution channel partners in these markets.

“The delivery of services to the health sector is about to change significantly and Working Systems is clearly focused to capitalise on this rapid growth market.”