Leading Canadian wireless service provider, TELUS Corporation (TU - Free Report) is reportedly investing in heath care based software providing company, Get Real Health. Given the opportunities in the health care technology industry, which is expected to grow around $250 billion by 2015 according to the World Bank, we believe the current investment bodes well for Telus’ long-term growth.
The investment is also likely to support Get Real Health’s product development goal and addition of features to InstantPHR – its current health care software. Further, Get Real Health is also looking forward to utilize the new funding for marketing and sales initiatives, enter into tie-ups to increase market penetration and offer more integrated health care technology solutions.
For Telus, the new investment would provide the company with a diversification opportunity from a highly competitive domestic wireless market, aggravated by the likelihood of Verizon Communications Inc. (VZ - Free Report) entering the Canadian market.
Previously, Telus took a significant step towards establishing itself in the Canadian health care telecom market through its acquisition of Emergis, a business process outsourcer specializing in health care and financial services. This acquisition strengthened Telus’ industry solutions for health care and financial services.
Apart from health care, the company also acquiredToronto-based Fastvibe Corporation, a leading provider of innovative and superior quality Web streaming solutions for businesses. The buyout added a unique technical, event and production Web management capability to the company’s portfolio.
Telus, which operates with other Canadian peers – BCE, Inc. (BCE - Free Report) and RogersCommunications Inc. (RCI - Free Report) – has a Zacks Rank #3 (Hold).