Orion Health has agreed to sell its majority stake in HealthLink to HealthLink management, averting a court case scheduled to be heard next week.
Orion held 52.4 percent of HealthLink.
Two separate High Court proceedings were scheduled: the first over royalty payments and the second over differing views between the shareholders of the direction of HealthLink.
Orion chief executive Ian McCrae says it was inevitable that one party needed to buy the other one out.
“We were offered a very good price,” he says.
McCrae describes the relationship between the two companies as symbiotic in the early days when all the software was developed by Orion.
“Gradually, HealthLink took over and became a standalone business. They’re pretty much autonomous these days.”
HealthLink chief executive Tom Bowden says the two organisations had different philosophies about health IT and disagreements about the directions of HealthLink.
“Both parties are now happy,” he says.
“”I think that Orion has done the right thing in allowing HealthLink to pursue its chosen course and I believe the company will be much the stronger for it.”
He says the protracted legal actions had put quite a strain on the relationship but the matter was now amicably resolved.