Infratil and Morrison & Co Growth Infrastructure Fund (‘MGIF’) have executed a conditional offer to acquire up to 75 per cent of Qscan, a comprehensive diagnostic imaging practice throughout Australia, from Quadrant Private Equity.
Infratil has conditionally offered up to 60 per cent of the business and MGIF has conditionally offered to acquire up to ~15 per cent. Existing doctor and management shareholders will retain ownership of at least ~25 per cent.
The acquisition Enterprise Value of A$735 million implies an EV/EBITDA multiple of 12.7 – 14.1x (based on forecast EBITDA of A$52-58 million for the year to 30 June 2021) and is subject to usual completion adjustments for net debt, net working capital and capital expenditure.
Qscan is one of Australia’s leading national digital imaging businesses. It runs a portfolio of over 70 clinics across the country, with a network of 10 clinics specifically offering PET (oncology) services.
Paul Newfield, Head of Australia and NZ for Morrison & Co said, “Qscan is a market leader in a growth industry. It has a secure revenue base backed by strong referral networks and a track record of strong, profitable growth with significant further growth potential.”
Diagnostic imaging plays an important role in the early detection of diseases and illnesses, and increased investment will reduce overall healthcare system costs while improving patient outcomes.
The Qscan investment will be managed by Morrison & Co on behalf of Infratil and MGIF. Qscan is currently owned by funds associated with Quadrant Private Equity, Doctors and Management.
More information about the acquisition can be found here.