Swedish private equity firm EQT is preparing its Australian radiology business, I-MED Network, for sale.
It's understood EQT has appointed Morgan Stanley to handle the deal, while sources said Rothschild also has a role.
I-MED is the country's largest radiology provider, with 200 clinics and about 20 per cent of the $3.6 billion a year diagnostic imaging market.
EQT bought the business for $500 million in 2014, taking it off a bunch of hedge funds including Anchorage Capital Group and Fortress.
The business was previously touted as an initial public offering candidate and went as far as to meet Australian and Asian fund managers in late 2015.
However owner EQT, which has a solid track record of investments in global healthcare, opted to retain the company.
It is understood EQT met with a number of investment banks in recent weeks, before tapping Morgan Stanley for the sell-side role.
The investment bank is expected to canvass interest among potential buyers in Australia and offshore. Although given concentration in the market, and the competition regulator's mood in recent times, it seems most likely the business would be picked up by a new entrant to the market.
I-MED has 17.7 per cent of the Australian diagnostic imaging services market according to IBISWorld data, with estimated revenue worth $631 million a year.
Its biggest competitors include Sonic Healthcare and Primary Health Care, which each have about 10 per cent of the market.
The pending sale process comes at a busy time in Australian health sector deals. New entrants have been scouting for opportunities, including the likes of Luye Medical and Jangho Group, while private equity also continues to be an active player.
