Telstra’s digital healthcare unit agreed to acquire patient management software company MedicalDirector for AUD350 million ($257.1 million), as the operator ramps efforts to develop a connected digital health service.

In a statement, Telstra Health MD Mary Foley highlighted benefits around partnering with health and elderly-care sectors, alongside plans to invest in MedicalDirector to deliver digital products to medical practitioners.

“This acquisition helps realise our vision to connect and coordinate across the continuum of care, enabling smoother experiences for those who need it and provide it.”

Digital services will span “desktop and cloud, to support the future delivery of primary healthcare”, Foley added.

MedicalDirector pitches its software as a way to reduce paperwork and administration. CEO Matthew Bardsley expressed optimism about Telstra Health’s backing, pointing to potential innovation and technology gains.

Brendon Riley, chair of Telstra Health’s board, explained the unit had transformed over the past five years and the acquisition reflected its importance to the parent company’s long-term growth strategy.

The deal is expected to close by end-September.

Last month Telstra Health detailed plans to acquire a majority stake in global healthcare organisation PowerHealth.