by John R. Fischer
, Senior Reporter | May 24, 2023
Carlisle Health, a consolidator in diagnostic imaging in Australia, is on the verge of acquiring Exact Radiology and its 11 clinics with a deal to be signed as soon as today, say anonymous sources.
Founded in 2018, Carlisle Health provides clinics with support for technology and corporate governance; recruitment, retention, and training for professional staff and development; improved patient outcomes; capital investments; optimal purchasing of goods, services, and capital equipment; and streamlined back-office administration systems. It holds 100% equity positions in several radiology practices in Queensland and New South Wales.
Exact Radiology was established in 2008, and serves western and southern Brisbane, specializing in women’s imaging, as well as advanced scanning, such as MR, SPECT/CT, ultrasound, X-ray, pain management; and nuclear medicine, including stress testing.
The Australian Financial Review broke the news
, reporting that Carlisle Health is expected to pay a similar price that Integral Diagnostics proposed last year for Exact Radiology, which consisted of $37.5 million up front on a cash and debt-free basis, followed by an earn-out of up to over $1.8 million based on how much revenue it makes.
Integral pulled out of its deal with Exact Radiology in October. Prior to this, it was planning to add six radiologists to the organization, and predicted pro forma EBITDA for this financial year to be $5.25 million, excluding losses from COVID-19 and flooding.
Infrastructure investment company Infratil was also potentially looking at making an offer for Exact Radiology but pulled out before binding bids were due.
Alternative asset manager Quintet Partners took a stake in Exact Radiology in 2019, alongside Bridgeport Capital and New Zealand-based private investment firm Direct Capital, and was expected to fund its growth and expand its clinical footprint and services, reported the Australian Financial Review
Allier Capital, EY and Maddocks advised Exact Radiology, while Carlisle was advised by Piper Alderman and KPMG.