Australian health-tech leader HotDoc has been acquired by private equity firm Potentia Capital in a deal reportedly valued between A$250 and A$300 million. The firm now holds a majority stake, joined by new co-investor Acclivis Group and long-term backer Airtree Ventures. This strategic acquisition marks a significant milestone for HotDoc and signals strong investor confidence in Australia's digital healthcare sector.
A New Chapter for a Health-Tech Leader
Potentia Capital successfully led the bid to secure a majority ownership position in the widely used patient engagement platform. This transaction sees them join forces with health-tech investor Acclivis Group, adding new strategic expertise. Long-standing investor Airtree Ventures also participated, reinvesting through a new fund to continue its support for HotDoc's mission.
The acquisition brings a refreshed leadership structure to the company's board of directors. Potentia partners Lachlan Kennedy and Amit Chand will join, alongside Airtree's Kell Reilly, who brings extensive growth equity experience. Geoffrey Sayer of Acclivis Group has been appointed to chair the newly formed board.
CEO and co-founder Ben Hurst, who will remain in his role, expressed enthusiasm for the partnership's shared mission. He stated that together, they will strive to deliver the best possible experience for GP practices and patients across Australia. Hurst affirmed there is significant work still to do, signaling a commitment to continued platform innovation.
HotDoc's Journey and Market Dominance
HotDoc was founded in 2012 by Ben Hurst, a former healthcare professional frustrated with inefficient administrative processes. The company's initial funding came from his parents, a GP and an ENT specialist, whose insights grounded the platform in clinical needs. This foundation prioritized strengthening the crucial doctor-patient relationship from the outset.
Today, the platform boasts a commanding presence, serving over 13 million patients and 23,000 medical practitioners. The system processes approximately 25 million appointments annually and claims a dominant 70% market share. Financially, the company generates around A$30 million in annual recurring revenue with a strong 25% EBITDA margin.
Airtree Ventures has been a pivotal partner since its initial Series A investment in 2015. Hurst praised the venture capital firm for backing a startup focused on sustainably improving Australian general practice. This long-term support was instrumental in HotDoc's journey and continued success through subsequent funding rounds.
Strategic Vision and Future Outlook
For Potentia Capital, this deal represents a significant entry into the healthcare software market. Andrew Gray, the firm's CEO, expressed excitement, stating that no previous opportunity in the sector has matched what HotDoc presents. This acquisition diversifies Potentia's portfolio, which has historically focused on sectors like mining, education, and HR.
The new capital injection is set to fuel HotDoc's next stage of development and responsible expansion. The company plans to continue investing in its platform to enhance services for GPs, specialists, and allied health professionals. This strategic backing will enable HotDoc to deliver greater value across the broader Australian healthcare ecosystem.
The acquisition of HotDoc by Potentia Capital, alongside Acclivis and Airtree, marks a pivotal moment for the health-tech pioneer. This new ownership provides the financial backing and strategic guidance necessary to accelerate innovation and deepen its market penetration. Ultimately, the deal reinforces the critical role of digital platforms in modernizing healthcare delivery and enhancing the patient experience in Australia.