Synova sells 4Ways to ECI, earns 6x

Christopher Papadopoullos
18 September 2018

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Synova Capital has sold 4Ways, a radiology reporting company, to ECI Partners.

The sale generated a return of 6x and IRR of 75%, Synova said. During Synova's ownership, 4Ways scaled its operations, developed new product lines and doubled its turnover.

ECI said it expects healthcare spending to continue to increase as the UK's population ages and grows, while hospitals are under pressure to deliver services on a budget, which 4Ways helps them to do. It was the final investment for ECI's £500m 10th fund.

For the year ending March 2017, 4Ways generated turnover of £12.6m and operational profit of £1.7m.

Previous funding
Synova backed the management buyout of 4Ways in June 2015 with capital from its Synova II fund.

Company
4Ways specialises in remote radiology. Through its network of UK-based consultant radiologists, the company assists both public and private healthcare providers with reporting on diagnostic images, including MRIs, CTs and x-rays.

Established in 2004, the company operates from its headquarters in Hemel Hempstead, Hertfordshire.

People
Synova Capital – Tim Ashlin (partner); Zachary Tsai (investment director).
ECI Partners – George Moss (partner).
4Ways – Ajay Chadha (CEO).