DURBAN – The AfroCentric Group, South Africa’s largest health administration and medical risk management solutions provider, has acquired Dental Information Systems Holdings (Denis Group), for R250 million to diversify its offerings in the healthcare sector.
AfroCentric is acquiring the dental benefit management company from EOH Holdings subsidiary EOH Abantu.
The information technology group said the sale of Denis was in line with its strategy of selling non-core assets as it seeks to right-size the organisation. EOH had set itself a target of achieving a total value of disposals of R1 billion in 2019, and said it has exceeded its target with the disposal of Denis.
“The proceeds of the sale received by EOH Abantu will primarily be utilised to reduce debt. The transaction is in line with EOH’s balance sheet deleveraging strategy and is expected to strengthen the capital structure of the EOH Group,” EOH said.
Denis owns health companies such as Medscheme, pharmaceutical distributor Pharmacy Direct, drug manufacturer Activo and several other health-related companies. It is one of only three managed care organisations accredited by the Council for Medical Schemes that specialise exclusively in dental benefit management.