M&A and Private Equity in the UK Diagnostic Imaging Market in 2025

Market Drivers: Demand, Staffing and Government Initiatives

Diagnostic services, particularly imaging, are at the centre of some of the biggest pressures and opportunities in UK healthcare. Volumes have climbed relentlessly, with more than 2.5 million tests now carried out each month - over double the level of 15 years ago. An ageing population, growing use of screening and a stronger policy focus on early detection mean demand will only continue to rise.

The system is struggling to keep pace. The UK has nearly 2,000 fewer consultant radiologists than required, alongside shortages of radiographers and sonographers. In 2024 alone, the NHS spent £216 million on outsourced reporting, a record level, underlining the extent of the challenge. Government initiatives such as Community Diagnostic Centres and new neighbourhood health hubs are designed to expand physical capacity, but these centres can only succeed if the workforce exists to staff them.

Role of the Independent Sector in UK Diagnostic Imaging

Against this backdrop, the independent sector has become critical in supporting the NHS. Mobile and modular units provide additional scanning slots, clinical insourcing helps trusts make better use of infrastructure, teleradiology extends the available radiologist pool by allowing scans to be reported remotely, and community contracts extend provision beyond hospital sites.

M&A and Private Equity Investment in Diagnostics

These fundamentals have made the UK diagnostic imaging market one of the most active areas for M&A and private equity. Alliance Medical was acquired by iCON Infrastructure in a £910m deal, Medica was taken private by IK Partners, and EQT-backed Evidia entered the UK through its purchase of 4ways. CVC’s Diagnostic Infrastructure Fund bought medneo UK to expand mobile scanning, while G Square has been building a platform through Diagnostic Healthcare, adding both Venturi Cardiology and ECG On-Demand. Foresight and MTIP have backed Hexarad, and international players such as RadNet and Apollo Radiology have also entered the market.

Outlook for the UK Diagnostic Imaging Market

With strong underlying demand, ongoing staffing pressures and a clear need for private sector support, the UK diagnostic imaging market is set to remain a highly active space for both strategic buyers and investors in the years ahead.