Telco giant Telstra Corporation Ltd (ASX: TLS) has demonstrated its intent to diversify away from traditional fixed and wireless telecommunication and internet services with the reported purchase of a UK-based health analytics business.
According to reports in the Fairfax and News Corp press the group has paid between $15 million and $50 million for the British Dr Foster eHealth business, although the company itself has not confirmed the price.
The Dr Foster business provides data analytics to public and private healthcare organisations and hospitals to help them improve performance and efficiencies.
Telstra's growing Health division had previously secured the exclusive rights to provide Dr Foster products and services in Australia in December 2013, with agreements now in place with 15 health services in Australia. Now it has full ownership Telstra will commit to building the business both in Australia and the UK, with potential to go elsewhere in the future.
It's no secret that any business which helps cut costs in the public healthcare sector is likely to receive support from governments, and Telstra is looking to do business with government, healthcare and insurance partners.
Moreover, eHealth generally is a fast-growing industry supported by the powerful tailwind of greater healthcare spending due to ageing populations around the world.
Telstra is not the only business looking to cash in on eHealth with ResMed Inc. (CHESS) (ASX: RMD) another large player pioneering eHealth solutions by agreeing partnership deals with electronic giants Nintendo and Apple recently.
There are several junior tech stocks in the eHealth business that also have ambitious plans to capitalise on this growing area. Pro Medicus Limited (ASX: PME) is a North American focused business that has doubled in value over the past year, while Global Health Limited (ASX: GLH) is a domestic player that has seen moderate success recently.
Telstra investors will know all about it's juicy fully franked dividend yield, but may think the current valuation means it's time to take some profits off the table and look elsewhere for high-yielding stocks with big growth potential.
