New Zealand-based infrastructure investment firm Infratil Ltd has inked an agreement to acquire 50.1-60% stake in local diagnostic imaging business Pacific Radiology Group Ltd, for up to NZ$350 million ($253.23 million).
Completion of the acquisition is subject to counterparty consents to change of control in relation to small number of material contracts. If those consents come in, the transaction will be completed by May 31, 2021, Infratil said in a statement on Thursday.
Pacific Radiology’s doctors who are its exiting shareholders and its management are slated to hold between 40% and 49.9% post the transaction.
As the majority investor, Infratil will have governance rights consistent with its shareholding pattern.
Pacific Radiology is the largest private diagnostic imaging service provider in the country – it operates as many as 46 clinics in the South Island and lower North Island and employs 90 radiologists throughout New Zealand.
“The Pacific Radiology acquisition, if completed, sits well with Infratil’s other high performing, high-quality assets, and builds on its investment last year in Qscan Group, a leading diagnostic imaging business in Australia,” Infratil CEO Jason Boyes said.
“When we outlined the company’s strategic direction in February, healthcare was identified as a sector of considerable opportunity. We also see this as an opportunity to scale Infratil’s investment in Qscan Group and create a meaningful Australasian healthcare platform with potential synergies and adjacent opportunities,” he added.
