Mid-market private equity firm ECI Partners has acquired teleradiology company 4Ways from Synova.

Financial details have not been disclosed but Synova, which backed the company and its CEO Ajay Chadha in a management buyout in 2015, said it had achieved a return of 6x invested capital and an IRR of 75% from the transaction.

Based in Hertfordshire, 4Ways is high growth business which has scaled rapidly, doubling its turnover over the last three years. It runs a 24/7 operation and reports on almost one million scans a year for over 100 sites, including NHS and private hospitals. As well as routine reporting, it offers out-of-hours and specialist clinical imaging services.

Commenting on the deal, Chadha said: ‘We are delighted to now be working with ECI Partners as we continue the growth and development of 4Ways Healthcare. Over the last seven years, we have built 4Ways Healthcare into a leading UK-based provider of teleradiology services…As we enter this next phase of growth, ECI will be able to help us better serve our clients and those patients’ whose scans we report. New infrastructure investments and resources will help our business improve its operational efficiency to meet ever increasing demand for radiology reporting services. We look forward to continued partnership working with our NHS and private clients with ECI’s support.’

ECI partner George Moss added: ‘Healthcare spend continues to increase substantially as the UK’s population ages and grows, while hospitals and health professionals are under pressure to deliver clinically excellent services efficiently and on budget. We are delighted to be able to partner with 4Ways, a company that is helping them to do this. ECI has a strong track record of working with growth companies and we look forward to partnering with Ajay and his team as they look to build out the business further in this very promising market.’

The radiology reporting market has experienced significant growth in recent years as the number of diagnostic scans increases and NHS organisations struggle to keep pace with demand. Market leader Medica, which listed on the LSE in 2017, recently announced EBITDA growth of 15% to £5.6m on the back of an 18% increase in revenue to £18.6m.

Synova Partner Tim Ashlin and Investment Director Zachary Tsai led the investment and exit for Synova. George Moss led ECI Partners’ investment in the business.