Affinity Equity Partners looking to build out Lumus Imaging business

Affinity Equity Partners is looking to add to its Lumus Imaging business.

Affinity Equity Partners is believed to once again be on the acquisition path in the radiology industry, as it searches for bolt-on purchases for Lumus Imaging.

DataRoom understands the private equity firm has been courting Allegro Funds for a potential play at its Perth Radiological business, which was valued at $400m some years ago.

Meanwhile, other smaller based diagnostic imaging providers in Victoria are on its radar.

Affinity remains keen to grow the Lumus Imaging business after paying $965m to Healius this year to buy the unit.

It will no doubt want a price far higher when it comes to sell, and to do that, it needs revenue growth.

Affinity offered a price equivalent to 17 times the company’s earnings before interest, tax, depreciation and amortisation, which sources say places pressure on Permira to achieve a similar result for its diagnostic imaging provider I-MED.

I-MED, the country’s largest diagnostic imaging provider, is now in the crosshairs of infrastructure investor Stonepeak, and with a $3bn price tag touted, it would need to generate at least $175m of annual EBITDA to extract the same multiple as the Lumus Imaging transaction.

DataRoom revealed in recent weeks that suitors were back negotiating to buy I-MED, up for sale through Morgan Stanley and Jefferies.

Lumus Imaging is the nation’s third-largest diagnostic imaging operation behind Sonic and I-MED.