Actively managing the portfolio

Research evidence excerpt

Actively managing the portfolio

Macquarie Equity Research Jardine Matheson

Redeploying capital: IMED in Australia

• JM has agreed to acquire 100% of I-MED Radiology Network for A$3.4b (US$2.4b) enterprise

value from Permira (a Priave Equity fund). The transaction implies 11.5x FY26e EV/EBITDA,

with I-MED having delivered a 5-year CAGR of 12% adjusted EBITDA to 2025. I-MED

represents Jardines' re-entry into Australia/New Zealand, following its refocus on Asia

Pacific.

Þ I-MED operates an integrated network of 215 diagnostic imaging clinics across Australia

and New Zealand. I-MED is a leader in teleradiology, the technology-enabled remote

interpretation of medical images to support diagnoses for patients in Australia, New

Zealand and the United States.

Þ I-MED performs over 7 million patient procedures annually in clinics, led by teams of

radiologists, radiographers and clinical support professionals including a team of over

500 radiologists in Australia.

Þ I-MED also has a minority stake in AI medical diagnostic startup, Harrison.ai.

• The transaction implies I-MED is on track to generate ~US$209m EBITDA in FY26e. The

announcement indicates the transaction is earnings neutral this year before being accretive

in year two (presumably FY27).

• The uplift to our current group EBITDA would be ~3.7% pro-forma on our 26e estimates.

Þ Assuming the transaction drives an increase in debt by US$2.4b also, and applying the

group tax rate, we estimate a potential year one NPAT of US$106m to the group, equal

to ~7% of our 26e underlying PATMI estimate.

Figure 3 - We estimate the acquisition could drive 3.6% higher EBITDA, all else

equal

I-MED US$m Notes

EBITDA contribution 209 Implied from the 11.5x reported multiple

Jardine Matheson US$m, 26e Potential impact on our forecast