Telstra is swapping the handset for stethoscope as it moves to acquire Australian patient management software company MedicalDirector, according to the Australian Financial Review.

Telstra and MedicalDirector’s owner, private equity company Affinity Equity Partners, reportedly signed the deal following an auction run by investment bank Jefferies.

Telstra CEO Andy Penn has previously hinted that the telco would invest more deeply into the burgeoning health sector, so the acquisition of MedicalDirector should come as no surprise.

The deal will reportedly see MedicalDirector join the telco’s Telstra Health unit, which provides IT and software services to health and aged-care groups in Australia, the UK and New Zealand.

They include more than 3000 pharmacies, 540 plus hospitals across the country and involve 1200 staff across 16 locations in Australia and the UK.

The AFR estimates the deal is worth more than $350 million.