medneo UK acquired by CVC

CVC DIF agreed on 7 August 2024 to acquire medneo UK from medneo Group, investing through its third core infrastructure fund. Chief executive Andy Spellman continued to lead the business with his management team, while the seller retained its German and Swiss operations. Established in 2018, medneo UK provides magnetic resonance and computed tomography scanning from mobile units stationed on hospital sites, supplying the scanner, the radiographers who operate it and the arrangements surrounding each examination. Its customers are National Health Service trusts and private healthcare providers, and it conducts more than 130,000 examinations a year from a fleet exceeding twenty vehicles alongside a centre in central London where patients pay directly. Mobile provision answers a particular constraint of the British health service, where waiting times for diagnostic imaging have lengthened and a trust requiring additional capacity must otherwise build a department and recruit radiographers, a process measured in years. A unit that arrives on site and operates within days addresses the backlog without capital expenditure, and the contracts through which it is engaged run over extended periods. Radiographers rather than scanners limit how far such a business can grow, since the machines can be bought but the staff qualified to operate them are in short supply across the health service, which is what distinguishes an operator supplying both from one leasing equipment alone. CVC DIF intended to fund further scanners, the fleet being the constraint on the volume of examinations the company can perform. Travers Smith advised CVC DIF, with L.E.K. on commercial, KPMG on financial and tax and Marsh on insurance matters, while Alantra advised medneo Group, with Freeths as legal counsel, BDO on financial and tax and CIL on commercial due diligence.

The acquisition of medneo UK is part of the growth strategy of CVC, which already has several external growth operations under its belt, notably M Group Services in 2024.