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Hg invests in medical imaging software firm Intelerad

By Josh White

Date: Thursday 23 Jan 2020

Hg invests in medical imaging software firm Intelerad

(Sharecast News) - Specialist private equity investor Hg has finalised an agreement for an investment in medical imaging software and enterprise workflow specialist Intelerad Medical Systems.
The company said the terms of the transaction were not not being disclosed, and added that the transaction was expected to close in the first quarter of 2020, following the satisfaction of customary regulatory approvals.

It said Intelerad, founded in 1999, was a medical imaging software provider that specialised in diagnostic viewing, reporting and collaboration solutions for radiologists.

Based in Montreal, it had more than 400 employees in various offices in Canada, the United States, the United Kingdom and Australia.

The company serves more than 300 healthcare organisations globally, including radiology groups, imaging centres, clinics and reading groups, and had a "strong and growing" presence in hospital imaging departments.

Intelerad was awarded 'Best in KLAS' recognitions, ranking number one for PACS Canada and number one for PACS Asia and Oceania in the '2019 Best in KLAS: Global Software (Non-US)' report.

Hg said it recognised Intelerad's "leading role" in supporting radiologists to deliver highly accurate diagnoses at optimum productivity.

The business was described as a "key enabler" of healthcare delivery, against a backdrop of increasing global demands, in radiology, for scalable and more efficient imaging, data management and workflow solutions.

Intelerad was said to be led by a "highly-talented" team who had developed "powerful solutions" for radiologists, offering both efficiency and a premium service that helped to create superior outcomes for both patients and healthcare providers.

Healthcare technology remained a core sector for Hg, with an investment focus on healthcare operations, core systems, life sciences digitisation, interoperability and population health.

Intelerad represented the fifth healthcare technology investment in its current portfolio.

Hg's investment would be made from the Hg Genesis 8 Fund, representing the firm's first investment in Canada and second investment led by the New York office since it opened in 2019.

Under the terms of the agreement, Hg would acquire Intelerad from Novacap's TMT IV Fund, and its founders, management and employee shareholders who would all be re-investing into the business alongside Hg.

"Partnering with Hg gives us access to a huge pool of knowledge in global healthcare technology and the opportunity to significantly advance the company's strategy," said Intelerad chief executive officer Paul Lepage.

"We are thrilled to continue making a difference in healthcare with such talented people.

"As well as welcoming our new investors, I also thank the Novacap team and our colleagues who all worked so hard to get us into this strong position, as well as our customers for their continued trust over the last 20 years."

Gero Wittemann, partner and co-lead of Hg's New York team, added that Intelerad had a "winning platform" that created "significant" efficiencies for healthcare organisations, while adding value to help radiologists and other physicians view, interpret and share medical images.

"We fully embrace Intelerad's vision in making a sustainable difference in healthcare and it's particularly exciting to join Paul and the team at this stage in the company's journey.

"We will look to leverage our experience in healthcare technology and our operational experts to support the business strategy through innovation and operational excellence."

Hg was advised on the investment by Tripletree, Bain, Marwood, EY and White & Case.

At 1548 GMT, shares in HgCapital Trust were down 1.12% in London, at 265p.

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