Novacap, founders, and management shareholders will reinvest alongside new partner
MONTREAL, Jan. 23, 2020 /PRNewswire/ - Novacap, the Canadian-based private equity firm, announced today that it has entered into a definitive agreement for the sale of a majority stake in Intelerad Medical Systems ("Intelerad"), a global provider of medical imaging software and enterprise workflow solutions to Hg, a U.K.-based private equity firm specialized in software and service businesses.
The transaction is expected to close in the first quarter of 2020, following the satisfaction of customary regulatory approval.
With over 400 employees and offices in Canada, USA, UK and Australia, Intelerad specializes in diagnostic viewing, reporting and collaboration solutions for radiologists. The company, who serves over 300 hospitals, imaging centers, clinics and radiology groups, enables increased productivity and streamlined medical imaging workflows. Intelerad's solutions are instrumental at improving its clients' efficiency while allowing them to deliver superior outcomes for both patients and healthcare providers.
Under the ownership of Novacap, Intelerad made significant investments in all areas of the business, including in research and development, to position the company as a leading global provider of medical imaging software, managed services and AI-augmented workflow solutions and to strengthen its customer-first focus. Over the last 4 years, Intelerad more than doubled its revenue, with the ongoing addition of new clients and the accelerated growth of its existing customer-base, which includes some of the largest hospitals, health systems and imaging service providers around the world. During the same period, the number of employees grew from 277 to over 400 today.
In 2018 under the leadership of Paul Lepage, newly appointed CEO of Intelerad, the company acquired Seattle-based Clario Medical, the provider of the state-of-the-art Clario SmartWorklistTM which intelligently manages reading workflows and optimizes reading quality and efficiency, and is being used as the backbone of the largest radiology practices and imaging centers.
"In 2016, Novacap TMT IV fund invested in Intelerad, confident that we would accelerate the growth of the business while allowing the development of best in class enterprise medical imaging solutions, supported by Intelerad's intrapreneurial culture. Today, I strongly believe that we surpassed our initial objectives, and helped define the strategic roadmap sustaining a strong growth. I am proud and convinced that the management team with the new ownership will continue to contribute to the future company's success,'' said François Laflamme - Senior Partner at Novacap - TMT.
"From the day Novacap came on board, it was clear to us founders that the team had the passion, expertise and dedication necessary to bring Intelerad to great heights. Novacap has exceeded our expectations, and we thank them and the Intelerad team for their hard work in bringing us to this enviable position today. We look forward to working with Hg to make a difference in healthcare." said Randall Oka, co-founder of Intelerad.
Paul Lepage, Chief Executive Officer at Intelerad, said: "Partnering with an Hg-led consortium will give us access to a huge pool of knowledge in global healthcare technology and the opportunity to significantly advance the company's strategy. We are thrilled to continue focusing on our customers success and creating superior outcomes for healthcare providers and their patients with such talented people. I welcome our new investors, and 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 and partners for their continued trust over the last 20 years. Looking forward to exciting times ahead."
Novacap was advised by Piper Jaffray, Deloitte and McMillan
ABOUT NOVACAP Founded in 1981, Novacap is a leading Canadian private equity firm with $3.6 billion of assets under management. Its distinct investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous portfolio companies. With an experienced management team and substantial financial resources, Novacap is well-positioned to continue building world-class businesses. Backed by leading global institutional investors, Novacap's deals typically include leveraged buyouts, management buyouts, add-on acquisitions, IPOs, and privatizations. Over the last 38 years, Novacap has invested in more than 90 companies and completed more than 130 add-on acquisitions. The company has offices in Toronto, Ontario and Brossard, Quebec. For more information, please visit www.novacap.ca.
ABOUT HG Hg is a European investor in software and services businesses, with increasing global presence, having built a team of 200 people over 25 years. Hg is a specialist investor, committed to building businesses that change the way we all do business, through deep sector specialisation and dedicated operational support. Hg partners with the businesses and management teams it invests in. Hg has over 30 operational professionals providing practical support to management teams to help them realise their growth ambitions. Hg shares best-practice 'playbooks' and leverages Hg's executive and portfolio network as a powerful tool for knowledge sharing across comparable businesses. Based in London, Munich and New York, Hg has funds under management of approximately $12 billion serving some of the world's leading institutional and private investors. For further details, please visit the Hg website: https://hgcapital.com/
ABOUT INTELERAD MEDICAL SYSTEMS Founded in 1999, Intelerad is a medical imaging software provider that specialises in diagnostic viewing, reporting and collaboration solutions. Headquartered in Montreal, Intelerad has over 400 employees located in various offices in Toronto and Calgary (CA), Seattle (US), Hertfordshire (UK) and Melbourne (AU). The company serves over 300 healthcare organizations around the world, with a particular strength in radiology groups, imaging centers, clinics and reading groups as well as a strong presence in hospital radiology departments.