Radiology giant I-MED’s sale pushed into next year

I-MED is the largest diagnostic imaging service provider in Australia.

The sale of the country’s largest radiology company, I-MED, will be pushed into the new year.

Macquarie Asset Management has been circling the company.

The deadline for Macquarie to determine whether it was going to buy the business was supposed to be this week.

But sources say that the infrastructure investor has been struggling with the size of the cheque – the asking price has been $3bn.

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.

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 have walked away after inspecting the company in detail.

Interested buyers first came forward to Permira with indicative offers before a formal process was launched where parties were allowed to carry out due diligence.

I-MED is understood to be forecast to generate about $250m of 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 be a float candidate in 2025.

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.