Quadrant Private Equity firm acquires imaging center network for over $130M
Quadrant Private Equity is acquiring a network of outpatient imaging centers for more than $130 million, leaders announced recently.
The Sydney-based investment group is buying all shares in fellow Australian company Carlisle Health, the Financial Review first reported Thursday. Founded in 2018, Carlisle operates a platform of 24 diagnostic imaging clinics across New South Wales and Queensland with a staff of over 500 including 70 radiologists.
Quadrant said it hopes to finalize the deal by the end of September, subject to customary closing conditions. It plans to partner with existing radiologist shareholders and management, supporting the imaging group’s “next phase of growth.”
“Carlisle is a strong platform with a reputation for delivering quality care for patients supported by leading radiologists,” Gareth Woodbridge, managing partner and co-head of buyout strategy at Quadrant Private Equity, said in a statement Aug. 15. “We look forward to supporting Carlisle by leveraging our extensive healthcare and specific radiology experience.”
Founded as Quadrant Capital in 1996, the firm has raised more than $6.5 billion in commitments across 15 funds, with 70 successful exits. QPE also previously acquired Qscan and North Coast Radiology in 2017, together valued at $130 million. The two at the time operated a total of 33 clinics with 40 radiologists. Quadrant later sold Qscan to Infratil, a New Zealand investment firm, for nearly $189 million in 2020.
Carlisle Health is one of Australia’s fastest growing radiology operators, according to Piper Alderman, which advised it on the sale. The company boasts over $13 million in earnings on $65 million-plus in revenue. Quadrant’s investment will help to support the opening of new clinics, introduction of additional imaging modalities, and fund further acquisitions, Piper Alderman said. The deal was structured as a voluntary, unanimous sale by Carlisle Health’s 51 shareholders.
“This is an exciting partnership, as Quadrant brings both the experience and financial strength to support Carlisle’s growth,” Jason Nagy, MBA, founder and director of Carlisle Health, said in the announcement.
The sale comes as some express concern about how private equity investments may impact radiology and other specialties. Earlier this year, the American College of Radiology formed a new task force on consolidation and corporatization in imaging to further explore this trend.
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.