Permira’s $3bn I-MED sale process springs back to life

I-MED is the country’s largest diagnostic imaging provider. Picture: Supplied

Parties are back looking at Permira’s I-MED, say sources, after the sale process for the $3bn healthcare operator was paused late last year.

Chatter in the market over I-MED has increased in recent weeks, with some suggestions that its owner Permira was in negotiations with an overseas buyer.

Others say that suitors that were interested in the company last year, Boston-based Bain Capital and Macquarie Asset Management, are back around the hoop in talks with the owner, but there’s still questions whether they pay up.

DataRoom understands that Permira has been taking a hard line on the $3bn asking price, but one possibility is that the diagnostic imaging provider may have increased its earnings, which makes suitors more comfortable paying up for the company.

I-MED is the largest diagnostic imaging service provider in Australia and its owner, Permira, has put the business up for sale through investment banks Jefferies Australia and Morgan Stanley.

A formal process was launched last year, and even though there was no outcome, the understanding is that the sale process was not officially closed, leaving many in the market guessing as to what would be Permira’s next steps.

Private equity firms have been interested in the sector, in the hope that the growing use of artificial intelligence can create greater earnings opportunities.

But many have considered $3bn a full price, and some last year walked away after inspecting the company in detail.

I-MED was forecasting about $250m of annual earnings before interest, tax, depreciation and amortisation.

Permira purchased I-MED in 2018 for $1.3bn, or 11 times its earnings from EQT.

It has more than 240 clinics across Australia.

The sale comes after Affinity Equity Partners purchased smaller rival Lumus Imaging from Healius for $965m.

Previously, I-MED has been slated for a listing, and some think it could still be a float candidate if the markets improve.

Hot on the heels of its sale could be Perth Radiological, which is owned by Allegro Funds and said to be performing strongly.

Meanwhile, Navis Capital is selling the healthcare business Device Technologies around the middle of the year.