Private equity firm Livingbridge is set to acquire Australian-founded teleradiology business Everlight Radiology and mark its cards as a serious player in the local buyouts scene.
Street Talk can reveal Livingbridge agreed a deal to take a majority stake in Everlight over the weekend, buying the large stake owned by Intermediate Capital Group and investing alongside the group’s management team and doctor shareholders.
The deal is understood to value Everlight at more than $500m, representing a big payday for departing shareholder ICG and a significant step-up when it comes to Livingbridge’s investments in the local market.
Livingbridge is expected to cut the cheque from its recently raised $2.3bn Fund 7 – a fund that was set up to target investments in the UK and Australia.
Everlight ticks both boxes. The group, which offers diagnostic services to hospitals and other health providers, was founded in Australia as Imaging Partners Online in 2006, before expanding into New Zealand and the United Kingdom (in 2010).
It is understood Livingbridge, advised by Allier Capital, had dealmakers in Australia and the UK involved in the transaction, matching the locations of Everlight’s key customers.
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ICG, which bought into the business in 2016, had Rothschild & Co’s bankers run an auction to identify the buyer. The search started nearly two years ago, before it was paused to let the business and bidders’ deal with implications from the COVID-19 pandemic. It restarted in recent months, with a confirmation of interest at the end of June.
That auction came to a head last week, sources said, when Rothschild collected binding bids. It is understood the process was competitive, with Livingbridge edging out rival PE firms and trade names to sign the transaction. Law firms DLA Piper (ICG) and Allens (Livingbridge) were heavily involved.
Stepping up
All of Everlight’s management team is expected to remain with the business. While the deal will take some weeks to complete, Livingbridge is expected to back Everlight management’s plans to grow in existing and new markets.
It’s a big acquisition for Livingbridge, which has steadily built an Australian/New Zealand investment portfolio since opening an office in Melbourne in 2016.
Its local investments include New Zealand rehabilitation and occupational health group Habit Health, project management and advisory services business TSA Management and Australian medical centres groups Better Medical and SmartClinics.
Everlight, both in terms of the business’ value and scope, is understood to be by far Livingbridge’s biggest local investment.
Source: AFR
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