(Corrects Luye chairman's name to Liu Dian Bo from Luis Diane Bo in paragragh 5)
SYDNEY, Dec 7 (Reuters) - Luye Medical Group has agreed to buy private equity-owned Australian hospital operator Healthe Care Pyt Ltd, the companies said, in the Chinese firm's first foray into the hospital sector.
The final price was not disclosed but local media had reported the deal was worth A$938 million ($688 million).
Luye Medical beat rival bids from Baring Private Equity and Bain Capital which banking sources said were also in the running for Australia's third-largest privately owned hospital operator.
The sources declined to be named as they were not authorised to speak about the transaction.
"I strongly believe that Healthe Care will provide us with a platform upon which we can build a world class and highly successful healthcare services business not only in Australia and China, but also in many other countries in Asia," said Luye chairman Liu Dian Bo.
The company, part of the privately owned Luye Group, was advised by Barclays BARC.L .
Archer Capital had bought Healthe Care from CHAMP Private Equity in 2011 for A$230 million. Morgan Stanley (N:MS) MS.N and Luminis Partners advised Archer on the sale.
Healthe operates 17 private hospitals across five states with more than 1,800 hospital beds according to information on its website. ($1 = 1.3643 Australian dollars)