Rad Partners expands overseas, acquiring 1 of world’s largest teleradiology businesses for reported $715M

Rad Partners is expanding overseas, acquiring one of the world’s largest global teleradiology outfits, the two sides announced Tuesday morning. 

North America’s biggest medical imaging provider has reportedly reached a definitive deal to purchase London-based Everlight Radiology. Founded in 2006, Everlight bills itself as the leading international provider of remote reads, serving hospitals and imaging centers across the U.K., Ireland, Australia, New Zealand and South Africa. 

Radiology Partners did not disclose financial terms of the deal, which is still subject to regulatory approvals and other closing conditions. However, the Australian Financial Review on Monday night placed the purchase price at approximately $715 million (USD), citing anonymous sources with knowledge of the agreement. 

“Everlight has an unmatched global network of subspecialty radiologists, built over 20 years. RP has likewise spent many years in teleradiology and built the clinical infrastructure and technology that supports radiologists at scale,” Rich Whitney, chairman and CEO of Nashville, Tennessee-based Radiology Partners, said in a statement Aug. 25. “Together, we can bring the best of what each has built to a growing number of patients and hospitals, delivering more advanced technology, deeper subspecialty support and higher standards of care in every market in which we operate.” 

London private equity firm Livingbridge is the seller, unloading Everlight Radiology after paying about $344 million (USD) to acquire a majority stake in 2021, the Financial Review reported at the time. Everlight employs over 800 radiologists working in 40 countries using a “follow the sun” operating model. This allows Everlight radiologists working across multiple time zones to help pick up late-night interpretations elsewhere during their own geography’s daytime hours. Everlight physicians currently handle about 2.5 million reports annually. 

“We are thrilled to be joining Radiology Partners, a move that will provide our radiologists and our clients access to additional clinical depth, technology and investment at a scale that would take years to build alone,” Rob Anderson, global CEO of Everlight, said in the announcement. “What will not change is what our clients value most: the same teams, the same standards and the same commitment to reporting every study quickly and accurately.”

Rad Partners, meanwhile, was founded in 2012 and employed over 4,000 radiologists prior to the deal, servicing 3,400-plus client sites. The investor-supported radiology group also has a strong remote-reading presence in the U.S., having acquired vRad, America’s largest teleradiology group, as part of its $885 million purchase of Mednax’s imaging business line in 2020. RP believes combining vRad and its 500-plus physicians with Everlight will establish a leading global teleradiology platform.

Upon closing, each organization will continue serving the same markets and clients, with radiologists reading where they are licensed and credentialed. Rad Partners highlighted staffing struggles in the specialty in the country’s Everlight serve, similar to the current U.S. shortfall. In Australia, for instance, the number of diagnostic imaging services delivered under its Medicare program rose 40% over the last decade. Advanced imaging grew almost two times faster than the radiologist workforce supply, according to government estimates. 

Rad Partners also believes technology from its subsidiary company, Mosaic Clinical Technologies, will help to boost physician efficiency and address these challenges in Everlight’s markets. Subject to regulatory clearances in other countries, RP said it plans to make its Mosaic Drafting, which uses AI to create preliminary imaging reports, available to Everlight readers. 

“For Everlight’s clients, day-to-day relationships, contacts and clinical workflows are unchanged, and the business will continue to be led by its current management team,” Rad Partners emphasized.