A private equity firm is seeking to sell its stake in a radiology group for upward of $135.2 million (USD), according to a report published Tuesday.
Sydney, Australia-based The Growth Fund has hired advisors and is now gauging interest from potential buyers. The mid-market PE firm—meaning it’s focused on companies in the $50-$500 million valuation range—would potentially sell Quantum Radiology in a two-stage auction, the Financial Times detailed May 9.
Also based in Australia, the imaging group has about a dozen locations focused around Sydney’s outer boroughs. Quantum Radiology also specializes in “bulk billing,” with patients paying nothing and the practice charging Medicare in bulk for similar claims.
Citing unnamed sources, the Times said advisory firm Allier is seeking bids this week with a price tag starting at around $101.4 million in U.S. dollars.
“Given the deal size, Quantum may be expected to attract a trade buyer seeking a chunky bolt-on purchase instead of a sponsor looking to build out a platform,” the report noted. “Radiology and diagnostic businesses have been a red-hot spot in healthcare deal-making.”
As one example, the report highlighted the November sale of Australian radiology services provider PRP Diagnostic Imaging for nearly $541 million.
Read more from the Financial Times below.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.