Datix’s proposed acquisition of RL Solutions investigated

19 September 2018
Release No. 40

Investigation opened into Datix’s proposed acquisition of RL Solutions

The Commerce Commission has opened an investigation into Datix’s proposed acquisition of RL Solutions.

The Commission will consider whether the acquisition would be likely to result in a substantial lessening of competition in any relevant market in breach of section 47 of the Commerce Act. The acquisition is a global transaction, which is due to be completed shortly. The parties have not applied for clearance for the acquisition.

At present, Datix and RL Solutions are the only two suppliers of patient safety software used in public hospitals in New Zealand.

The Commission invites parties who consider they hold relevant information to contact the Commission at registrar@comcom.govt.nz with the reference Datix/RL Solutions in the subject line by Wednesday 26 September 2018.

Background

Section 47 of the Commerce Act prohibits acquisitions that are likely to substantially lessen competition. 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. If a person breaches Section 47 they may be subject to a penalty of up to $500,000 for an individual or $5 million for a firm.

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