Private equity firm Affinity Equity Partners has successfully acquired Western Radiology, a Perth-based provider of medical imaging services, including CT scans, MRIs, and ultrasounds. The deal marks a significant shift in the competitive landscape of radiology in Australia, as Lumus Imaging, backed by Affinity, steps in just as exclusivity agreements were falling apart for Crescent Capital Partners.
The acquisition was finalized over the weekend, following reports that Crescent Capital Partners had been in advanced discussions to purchase Western Radiology. However, Affinity seized the opportunity to position itself as a leading partner in the radiology sector. With this acquisition, Lumus Imaging will enhance its national footprint, which previously lacked representation in Western Australia.
Strategic Growth and Expansion Plans
Founded in 2011, Western Radiology operates eight locations across Perth and employs around 18 specialists in radiology and cardiology. This acquisition allows Lumus Imaging to elevate its service offerings, further strengthening its market presence. Lumus is already one of the largest providers of medical imaging services in Australia, boasting approximately 150 sites and a workforce of 2,000 diagnostic professionals.
Sources indicate that Lumus has experienced a remarkable revenue growth of 30 percent, surpassing $650 million since Affinity’s buyout of the ASX-listed pathology firm Healius in May. The firm is now poised to leverage Western Radiology’s capabilities to solidify its coast-to-coast strategy, thereby enhancing its appeal for national contracts.
According to insiders, the acquisition underscores Affinity’s commitment to expanding and upgrading Lumus’ clinic network and exploring additional bolt-on acquisitions. The shareholders of Western Radiology had previously engaged KPMG to facilitate the sale of the business, indicating the strategic importance of this deal in the evolving landscape of healthcare services in Australia.
Future Implications for the Radiology Sector
As Lumus Imaging integrates Western Radiology into its operations, industry analysts will be watching closely to see how this expansion influences the competitive dynamics of the medical imaging sector. The addition of Western Radiology fills a geographical gap for Lumus, providing a robust platform for further growth in both urban and regional markets.
With the success of this acquisition, Affinity Equity Partners and Lumus Imaging are well-positioned to capitalize on the increasing demand for diagnostic imaging services in Australia. The deal not only reflects the ongoing consolidation within the healthcare industry but also highlights the importance of strategic partnerships in enhancing service delivery and operational efficiency.
