RadNet Acquires Two Imaging Centers in New York from Presgar Imaging
LOS ANGELES, California, January 6, 2011 – RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 200 fully-owned and operated outpatient imaging centers, today reported it has completed the acquisition from Presgar Imaging and affiliated entities of imaging centers in Brooklyn and Orchard Park, New York for cash consideration of $2.2 million plus the assumption of approximately $700,000 of debt.
Highway Imaging in Brooklyn and Parkland Diagnostic in Orchard Park are both multimodality facilities, offering a combination of MRI, CT, PET/CT, ultrasound, mammography, bone density and x-ray. The two centers should add approximately $7 million of revenue to RadNet on an annualized basis.
Howard G. Berger, MD, President and Chief Executive Officer of RadNet explained, “This is another example of the many tuck-in acquisitions we are pursuing in our core markets. Last April, we entered the Brooklyn market with our acquisition of a facility we purchased from a bankruptcy estate. The acquisition of the Highway Imaging facility further increases our presence in that very densely populated market. Our acquisition of Parkland Diagnostic represents a contiguous market expansion for our Rochester cluster of centers, and is our first center in the greater Buffalo, New York area.”
“As the economy remains challenged and reimbursement and utilization pressures continue within healthcare services, we continue to see more and more opportunities to acquire smaller operators in our markets. We remain disciplined in our approach to the acquisitions multiples which we are willing to pay, and we are focused on the continual evaluation of the most attractive uses of our liquid resources,” added Dr. Berger.
About RadNet, Inc.
RadNet, Inc. is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of 200 fully-owned and operated outpatient imaging centers. RadNet’s core markets include California, Maryland, Delaware, New Jersey and New York. RadNet, through wholly owned subsidiaries, also offers radiology software solutions and teleradiology services to hospitals, radiology groups and other diagnostic imaging industry participants. Together with affiliated radiologists, and inclusive of full-time and per-diem employees and technologists, RadNet has over 4,300 employees. For more information, visit http://www.radnet.com.
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 the Company’s ability to successfully integrate acquired operations, achieve cost savings, develop new and useful software products and successfully market those products, 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 the Company's actual results to differ materially from the statements contained herein. Further information on potential risk factors that could affect the Company'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. The Company 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.
RadNet, Inc.
Mark Stolper
Executive Vice President and Chief Financial Officer
310-445-2800