European Telemedicine Clinic raises $9,8 million dollars funding

Barcelona 19 September 2007Kennet Partners, an international growth equity investor focused on the technology sector, has achieved the first investment from its new fund, Kennet III L.P. Kennet has led a 7 million euro financing of the European Telemedicine Clinic (TMC), the European market leader in the provision of sub-specialized teleradiology services to public and private health care providers.

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Teleradiology involves the transmission of digitised diagnostic images - such as X-rays, Magnetic Resonance Imaging (MRI) scans and CT/PET scans - to a remote location for interpretation by certified radiologists. In recent years, demand for advanced diagnostic scans has increased significantly, leading to long waiting times for patients and highlighting a shortage of specialized radiologists in many countries.

As a result, hospitals are looking to teleradiology to provide access to sub-speciality diagnostic services, and to achieve their objective of reducing patient waiting times. TMC was one of the first European providers of teleradiology services and is currently the leader in the United Kingdom and Europe.

According to Frost & Sullivan, some 91 million digital radiography exams took place in Europe in 2006, a figure that is expected to grow to 198 million by 2010, with most of the increase coming from the so-called complex modalities - MRI and CT/PET. It is estimated that in the most advanced European markets for teleradiology - the United Kingdom, Spain and Scandinavia - less than 4 percent of these exams are currently being interpreted remotely. Evidence from more mature markets, such as the United States, indicates that up to 20 percent of diagnostic exams will eventually be reported remotely.

TMC was founded in 2001 by David Bäckström and Henrik Agrell in Barcelona, Spain. Today, more than 80 experienced radiologists work for TMC. From the company's centralized reading facility in Barcelona, a large base of British radiologists serve the market in the United Kingdom. The company also provides European hospitals with on-call or "nighthawking" services from Sydney, Australia. TMC pioneered the establishment of new quality and control processes for remote reading centres, and as a result the company is considered a quality leader in this market.

"What impressed us about TMC's management was the speed with which they established the company as both the quality and volume leader in the market. TMC is setting the standard for sub-speciality radiology services in Europe today. We are delighted to support the TMC team as they cement their position in the global market for telemedicine services", stated Maximilian Bleyleben of Kennet Partners.

"The timing of Kennet's investment could not be better for TMC. With Kennet on board, TMC will further accelerate its growth and presence in the United Kingdom and other geographic markets and to develop new service offerings. Our growing sub-speciality expertise with the most advanced imaging modalities, such as CT/PET, will enable us to remain a pioneering provider of telemedicine services to hospitals worldwide", stated David B&ckstr&m of TMC.

Maximilian Bleyleben of Kennet will join the board of directors of TMC. The company was advised in this financing round by GBS Finanzas of Madrid. As part of this financing, earlier investors Active Capital Partners (ACP) and Inversions en Innovació a Catalunya, F.C.R. (Invernova) achieved a partial exit for their shareholdings. Invernova was the first institutional investor in TMC in 2004.


Leslie Versweyveld

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