Private equity-backed imaging chain doubles footprint with 2 acquisitions

One of Canada’s largest radiology service providers is expanding with two new additions.

Fueled by private equity firm Novacap, Canada Diagnostic Centers is buying up both Guardian Radiology (17 locations in Alberta and Saskatchewan) and The Ultrasound Center (four more in Saskatchewan), leaders announced Feb. 14. Following the move, CDC, as it’s called for short, will operate nearly 40 imaging clinics in Canada, including 28 in Alberta, nine in Saskatchewan and another in British Columbia.

“Novacap is proud to support the continued growth and expansion of CDC,” Marc Paiement, senior partner at the private equity firm, said in a statement. “The recent transactions serve as a testament to this commitment, further solidifying CDC's position as the premier provider of radiology services in Western Canada.”

CDC said it handles about 700,000 patient visits annually, delivering imaging services across eight different modalities. The numbers are up from 18 centers and 500,000 referrals, disclosed in 2021 when Novacap first invested in the radiology firm with an eye toward national expansion. This is its second investment in the industry, having bought up image-management vendor Intelerad in 2016 and then  selling its majority stake four years later for $500 million.

“With Novacap as our partner, we have found the perfect match to accelerate the growth of CDC and make radiology services accessible to more Canadians while building a great place to work and practice,” Lorne Paperny, founder and President of CDC, said in the announcement.

Founded with its first clinic in 1993, physician-led Canada Diagnostic Centers employs more than 500 trained professionals, completing 1 million exams annually, according to its website.

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