Abano exercises second option for Ascot Radiology

Abano Healthcare Group today advised that it has exercised its option to acquire a further 40 percent interest in Ascot Radiology for $2.57 million.

Abano acquired its original 40 percent interest in Ascot Radiology, an Auckland based radiology practice, in February 2005.

Managing director of Abano, Mr Alan Clarke, commented: “We have been pleased with the performance from Ascot Radiology over the past eighteen months. The model and business is working well and we believe it has the potential to double in size over the next three years.

“In February 2007, we acquired an 80 percent interest in a second radiology business, Greenlane Imaging, which will now become a subsidiary of Ascot Radiology and operate as a satellite clinic.

“In line with Abano’s policy of equity involvement of clinicians, the vendors of Ascot Radiology, Dr David Rogers and Dr David Milne, will continue to hold the remaining 20 percent of the business. We also plan to introduce several new associate Radiologists, who will join the two founding partners in an equity partnership with Abano. Abano would then reduce from 80 percent to a shareholding of approximately 70 to 75 percent.”