Advent Partners has agreed to transfer Imaging Associates into single-asset continuation vehicle (VC) while simultaneously merging the Australian diagnostic imaging business with an industry peer.

The combination of Imaging Associates and Radiology SA “reflects a shared vision to build a national leader in diagnostic imaging while maintaining a strong doctor-led model and an unwavering focus on clinical excellence,” according to a statement seen by AVCJ.

Hamilton Lane and Sagard are the lead investors in the CV, which also features other unnamed global institutional investors. The transaction was oversubscribed, the statement noted, without disclosing any financial details.

Advent backed Imaging Associates in December 2021, committing capital from Advent Partners 2, which closed on AUD 300m (USD 210m) in 2018. This was the firm’s seventh fund overall but second following a leadership transition. The manager is currently in the market raising Fund IX.

Advent has a long track record in healthcare and in diagnostic imaging specifically. It previously invested in Lake Imaging and supported a merger with South Coast Radiology to form Integral Diagnostics. When the company went public in 2016 it was Australia’s fourth-largest diagnostic imaging business.

Imaging Associates and Radiology SA, which were established in 2008 and 2005, respectively, will together have 30 private clinics, service contracts with 15 hospital sites, more than 200 radiologists, and approximately AUD 300m in annual revenue.

“The businesses combine complementary regional footprints, leading clinical capabilities and a strengthened capital base, uniquely positioning the group to capture its next phase of growth,” the statement said, adding that radiologist shareholders from both legacy businesses remain significant investors.

AVCJ Research has records of approximately 20 single-asset CVs involving Asia Pacific-based businesses. Australia and New Zealand account for just over half. Other recent transactions include Pemba Capital Partners-owned Vets Central and Navis Capital Partners-owned Mainland Poultry.

UBS served as financial adviser and exclusive placement agent to Advent on the Imaging Associates CV.

Advent declined to comment.