- As part of a greater push into the healthcare sector, Infratil (IFT) is set to acquire a majority stake in diagnostic imaging business Pacific Radiology
- The deal will see Infratil purchase an interest between 50.1 and 60 per cent for up to NZ$350 million (roughly A$326 million)
- It follows the $289.6 million acquisition of a 56.25-per-cent interest in Australian diagnostic imaging business Qscan Group in December
- The transaction is expected to close by the end of May this year
- Infratil is up 2.66 per cent to $6.57 per share
As part of a greater push into the healthcare sector, Infratil (IFT) is set to acquire a majority stake in diagnostic imaging business Pacific Radiology.
As the largest private imaging service provider in New Zealand, Pacific Radiology operates 46 clinics in the South Island and lower North Island, employing 90 radiologists across the country.
While the deal remains subject to counterparty consents regarding a change of control, the deal will see Infratil purchase an interest between 50.1 and 60 per cent for up to NZ$350 million (roughly A$326 million), giving Pacific Radiology an overall enterprise value of around NZ$867 million (roughly A$808 million).
Should those consents be given, the transaction is expected to close by the end of May this year.
Once complete, the current shareholders of Pacific Radiology will hold a stake between 40 and 49.9 per cent, giving Infratil governance rights in accordance with its relevant holding.
Jason Boyes, who was appointed chief executive of Infratil in February, said the acquisition sits well with the company’s other assets and builds on a $289.6 million investment to acquire a 56.25-per-cent interest in Australian diagnostic imaging business Qscan Group in December.
“When we outlined the company’s strategic direction in February, healthcare was identified as a sector of considerable opportunity,” he said.
“Diagnostic imaging is an essential services industry, offering a combination of defensive characteristics and structural long-term growth.”
Boyes also noted that the Pacific Radiology acquisition is an opportunity to further scale the company’s investment in Qscan, with the aim of creating an Australasian healthcare platform with “potential synergies and adjacent opportunities.”
Infratil is up 2.66 per cent to $6.57 per share at 1:26 pm AEST.