Korea's SK Telecom launches digital healthcare JV with local GP
Korea’s SK Telecom has spun out its digital healthcare development unit to form a joint venture (JV) with local private equity firm Newlake Alliance Management.
Newlake will be the largest shareholder in the new entity, known as Invites Healthcare, although it is not clear if it will have a controlling position. SK Telecom said in a statement it would be the second-largest shareholder with a 43.4% stake. Local life sciences specialist SCL Healthcare is also expected to contribute to the JV, which values Invites Healthcare at around KRW100 billion ($83 million).
SK Telecom’s former head of healthcare, Kim Joon-yun, will lead the company as CEO. The plan is to combine SK Telecom’s IT and communications expertise with Newlake’s background in growing healthcare companies. The private equity firm has two global healthcare funds, including a growth fund that raised KRW150 billion in 2013 and an early-stage vehicle for developing markets said to have closed at $50 million in 2015.
Invites Healthcare aims to be active in both domestic and overseas markets, with a focus on the digitization of chronic illness management in areas including cardiovascular diseases, respiratory illnesses, and brain disease. The company will also operate Coach-coach Diabetes, a platform and app developed by SK Telecom that helps diabetes patients self-manage their blood sugar and exercise, while allowing doctors to monitor data in real-time.
In addition, there will be a program aimed at improving hospital procurement processes and developing cloud-based systems for the management of medical data. The JV expects to grow a global network after taking over SK Telecom’s healthcare partnerships in Asia and the Middle East.
In the Korean market, past healthcare initiatives launched by the company include HealthConnect, a joint venture with Seoul National University Hospital (SNUH). The unit established Health-On, a digital health management service intended to help corporate employees achieve health-related goals using smart watches, apps and consultants.
Newlake was founded in 2012 by Yong Kyu Shin and Benjamin Jenkins, previously senior executives at The Blackstone Group, and Randal Lee, formerly a managing director at CVC Capital Partners. Standout healthcare investments in Asia include Chaum, a Korea-based business focused on beauty, wellness, and anti-aging, and Tokyo Cell Clinic, an affiliated cancer therapy developer. Global interests include hospitals and fertility clinics.
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