HESTA invests $120m in billion-dollar healthcare technology firm Citadel Group
HESTA is expanding its investment in leading Australian health software solutions, today announcing it has acquired a $120m equity stake in the newly combined Genie Solutions and Citadel Group. Citadel acquired Genie Solutions last month and HESTA, an investor in Genie since 2017, reinvested the bulk of its proceeds from the sale of Genie into an investment into the newly combined Citadel Group, maintaining its exposure to a fast-growing business and the digital healthcare sector more broadly. Both Citadel and Genie are leading providers in their respective market segments.
“HESTA’s deep relationships across the fast-growing healthcare sector gives us a unique investment perspective that’s helping to deliver outstanding investment performance for our members,” HESTA CIO Sonya Sawtell-Rickson said.
“We’re proud to be continuing to invest in the next chapter of Genie Solutions’ growth. Our investment in Citadel Group will give us exposure to a group of companies providing healthcare and enterprise software services in Australia and globally.
”Genie has developed into the leading market provider as the sector rapidly expands the digital support for healthcare provision. With Genie, the investment in Citadel is a natural fit for HESTA, and its more than 900,000 members. On the frontline of the health and community services sector, many members are likely users of Citadel and Genie software. “Investments like this are helping improve our members’ experience at work, while also supporting digital innovation in their sector,” Ms Sawtell-Rickson said.
Mark McConnell, CEO of the Citadel Group, said: “We welcome the investment of HESTA as a well-informed partner, particularly given its history with Genie. The combined business is the leading software provider for medical specialists, diagnostic testing, and medical treatment. We are very confident that the combination of the two businesses will bring great benefits, namely better diagnosis and patient care.”
Citadel is majority-owned by private equity firm Pacific Equity Partners, and HESTA’s investment alongside PEP expands the existing relationship HESTA has with PEP, namely as an investment manager for HESTA’s investments in infrastructure via PEP’s Secure Assets Fund.
“Through our long-term relationships with leading investment managers, we’re focused on investing in innovative companies that are developing the technologies and growth industries of the future that’s also contributing to strong long-term returns for members,” Ms Sawtell-Rickson added. “Through their super, our members are helping commercialise life-saving medical breakthroughs, developing cutting-edge cleantech to tackle climate change and future-proofing the sectors in which they work by supporting digital innovation.”