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London private equity firm Duke Street has agreed to acquire a medical imaging equipment supplier from Philips, the two announced Monday.

Philips and Duke Street did not disclose terms of the transaction, which they hope to close by October. Europe’s medical imaging rental market is worth about $545 million and expected to grow by upward of 7% over the next few years, the private equity firm noted. Currently, Agito has 47 employees and a fleet of 50 rentals, but Duke Street expects to inject capital to grow these figures. Mobile imaging equipment offered includes CT, MRI and cath labs, with staffing solutions to accompany the three.

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Prior to the final proposal’s release, the American College of Radiology reached out to CMS to offer its recommendations on payment rates for five out of the six the new codes.

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Agito Medical was first founded in 2004 and acquired by the Amsterdam original equipment manufacturer in 2018. Based in Aalborg, Denmark, the company offers mobile imaging rental solutions, preowned imaging equipment and spare parts across Europe.

The move comes as England faces a “staggering shortfall” of radiologists with long wait lists for imaging exams, the Morning Star reported Monday.

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“We are very pleased to acquire Agito, a market-leading business that we believe represents a significant opportunity for Duke Street and our investors,” said Managing Partner James Almond. “Our investment in Agito represents a classic Duke Street deal: a carve-out from a globally recognized business, acquisition of an excellent healthcare product and a talented team that we back, fueled by an investment program that will create value for all.”

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Duke Street sees “great potential” to further scale the firm. Since Philips acquired Agito Medical, it has grown “significantly” and expanded into multiple international markets. Today, it spans 10 countries including Germany, France, Ireland and the U.K.

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Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.

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