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ComCom drops probe of software buyout after divestments

ComCom drops probe of software buyout after divestments

Regulator satisfied after several customers were offloaded to other suppliers

Credit: Photo 101782364 © Volha Rahalskaya - Dreamstime.com

After going on two years, the Commerce Commission has closed its investigation into Toronto-based software vendor Datix's acquisition of London-based RL Solutions.

The competition regulator opened an investigation into the proposed global deal in September 2018 after the parties completed the transaction without applying for local clearance under 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 at the time.

Today the commission announced it had closed its investigation without taking any further action because its concerns had been addressed after the company divested some customers to another supplier.

The Commission was concerned that the acquisition had resulted in a substantial lessening of competition, enabling Datix to raise prices or lower the quality of the software and related services that it supplies in New Zealand.

A report on the case said Datix advised that any issues with the acquisition in New Zealand would be addressed by a divestment of its RiskMan software customers to Darjack Pty Ltd, which supplies patient safety software in Australia under the Cgov brand. 

After the Divestment, Datix would no longer support RiskMan software in New Zealand.

"Datix divested several of its customers to a new supplier of patient safety software, which the commission considered will ensure Datix continues to face meaningful competition," the regulator said in its annoucement. 


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Tags health softwareDatixRL Systemspatient safety software

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