RadNet Closes the Previously Announced Acquisition of Southern California Imaging Centers from InSight Health Corp.
LOS ANGELES--(BUSINESS WIRE)-- RadNet, Inc. (NASDAQ:RDNT), a national leader in providing high-quality, cost-effective diagnostic imaging services through a network of owned and operated outpatient imaging centers, today reported that it has completed the purchase of the assets of five of six previously announced Los Angeles imaging centers from InSight Health Corp. The completion of the sixth center, in Van Nuys, California, is pending third-party approvals.
The centers RadNet acquired include the former InSight centers in Simi Valley, Thousand Oaks, Westlake, Encino, and Valencia. The centers provide a combination of imaging modalities, including MRI, CT, X-ray, Ultrasound and Mammography.
The cash purchase price was funded by a portion of the recently completed incremental term loan provided by GE Healthcare Financial Services. The operations of the five centers produce approximately $7 million in annual revenue.
“We are excited about the cost savings and consolidation opportunities this transaction brings to us, particularly in Westlake/Thousand Oaks and the West San Fernando Valley, markets where we have significant presence. We continue to be attracted to acquisitions that further enhance our penetration and competitive position in our existing markets,” said Dr. Howard Berger, Chairman and Chief Executive Officer of RadNet.
About RadNet, Inc.
RadNet, Inc. is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of 160 fully-owned and operated outpatient imaging centers. RadNet’s core markets include California, Delaware, Maryland and New York. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 4,000 employees. For more information, visit http://www.radnet.com.
About InSight Health Corp.
InSight, headquartered in Lake Forest, California, is a nationwide provider of diagnostic imaging services. It serves managed care entities, hospitals and other contractual customers in over 30 states, including the following targeted regional markets: California, Arizona, New England, the Carolinas, Florida and the Mid-Atlantic states. As of December 31, 2007, InSight’s network consists of 97 fixed-site centers and 105 mobile facilities.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning RadNet’s ability to successfully acquire and integrate new operations as well as RadNet's financial guidance, its statements regarding cost savings, its statements regarding increased business from new equipment or operations, are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties, which may cause RadNet's actual results to differ materially from the statements contained herein. Further information on potential risk factors that could affect RadNet's business and its financial results are detailed in its most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date they are made. RadNet undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
Mark Stolper, 310-445-2800
Executive Vice President and Chief Financial Officer
Integrated Corporate Relations, Inc.
John Mills, 310-954-1105