Infratil Limited, a New Zealand-based infrastructure investment company, has announced that it has executed a conditional agreement to acquire between 50.1% and 60% of Pacific Radiology Group, a comprehensive Diagnostic Imaging business in New Zealand, from existing Doctor shareholders, for total consideration of up to NZ$350 million.

Pacific Radiology is the largest private diagnostic imaging service provider in New Zealand, operating 46 clinics in the South Island and lower North Island and employing 90 radiologists throughout New Zealand.

Completion of the Pacific Radiology acquisition is conditional on counterparty consents to change of control in relation to a small number of material contracts. Assuming those consents are given, completion is expected by 31 May 2021.

Infratil CEO Jason Boyes said, “Diagnostic imaging is an essential services industry, offering a combination of defensive characteristics and structural long-term growth. Pacific Radiology is New Zealand’s largest private provider of diagnostic imaging and has a proven track record for delivering long-term growth, both organically and via acquisition”.

“We also see this as an opportunity to scale Infratil’s investment in Qscan Group and create a meaningful Australasian healthcare platform with potential synergies and adjacent opportunities”.