‘Leading’ private equity firm invests in one of country’s largest imaging center operators

A “leading” private equity firm in Canada is making a splash in radiology by investing in one of the country’s largest imaging center operators.

Novacap announced the new partnership on Monday, linking up with the Canada Diagnostic Centers chain of clinics. CDC, as it’s called for short, operates 18 outpatient centers across Alberta and British Columbia, handling 500,000 patient referrals annually.

With the investment, the two hope to expand CDC’s platform from coast to coast, underlining its position as the “leading diagnostic imaging provider in Canada.”

“Today we announce a significant partnership with these exceptional radiology clinics. Our teams are committed to making CDC's vision come to life and to build its Canada-wide practice from their headquarters in Calgary,” Novacap Senior Partner Marc Paiement said July 6.

Founded with its first clinic in 1993, physician-led Canada Diagnostic Centers employs more than 500 trained professionals, completing 1 million exams annually. It delivers a range of radiology services, including ultrasounds, mammograms, X-rays, MRIs, CT scans and imaging-guided pain management.

CDC plans to keep its leadership and shareholders in place following the investment while seeking additional practice partners in other provinces. Ideal candidates would share the group’s “vision for quality, timely access to these services, and are interested in being part of a national collaboration of professionals making positive differences in patients' lives," CDC, President and Founder Lorne Paperny said in a statement.

This is Novacap’s second investment in the imaging space, after previously acquiring Intelerad back in 2016. The company unloaded its majority stake in the vendor last year for some $500 million.