New Zealand competition regulator the Commerce Commission has opened an investigation into Datix’s proposed acquisition of RL Solutions.
The acquisition is a global transaction, which is due to be completed shortly, however the parties had not applied for clearance for the acquisition.
Datix is based in Toronto while RL Solutions is in London - no financial terms for the proposed transaction have been disclosed.
The regulator said it will consider whether the acquisition would be likely to result in a substantial lessening of competition in breach of section 47 of the Commerce Act.
"At present, Datix and RL Solutions are the only two suppliers of patient safety software used in public hospitals in New Zealand," the commission said in a notice today.
The regulator is inviting parties with relevant information to contact it by next Wednesday.
The Commission administers a voluntary regime that allows firms to apply for clearance if they consider their planned acquisition could raise competition issues.
If firms do not apply for clearance, the Commission can initiate an investigation into a proposed or completed merger under Section 47.
The commission is also currently investigating French company Thales' proposed acquisition of digital security company Gemalto. In that case, Thales sought clearance.
If Section 47 is breached an individual may be subject to a penalty of up to $500,000 or $5 million for a firm.