RadNet Acquires West Coast Radiology, Significantly Increasing RadNet's Orange County, California Presence
FOR IMMEDIATE RELEASE
LOS ANGELES, California, April 2, 2012 RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 233 owned and operated outpatient imaging centers, today reported it has executed a definitive agreement to acquire the assets of West Coast Radiology, which include five multi-modality imaging centers in Orange County, California.
The facilities located in Anaheim, Santa Ana/Tustin, Irvine and Mission Viejo/Laguna Niguel operate a combination of MRI, CT, ultrasound, mammography, x-ray and other related modalities. The five centers should add approximately $17 million of revenue to RadNet on an annualized basis.
Dr. Howard Berger, President and Chief Executive Officer of RadNet noted, this transaction significantly strengthens our position in Orange County, CA. Not only do the West Coast Radiology sites broaden our footprint in Orange County, but it also greatly strengthens our physician capabilities in that region. For almost 25 years, West Coast Radiology has been one of the premier radiology providers in Orange County. West Coast Radiology has successfully nurtured close relationships with several longstanding Independent Practice Associations and other medical groups with whom they contract in Orange County, representing future expansion opportunities for RadNet. I welcome the West Coast Radiology physicians and their employees to the RadNet family.
Dr. Berger added, "Tuck-in transactions like this one are important in furthering our strategy of becoming the significant outpatient provider to our regional payors, while strengthening our local branding. The larger we get in our medical communities, the more opportunities we have to drive cost efficiencies and to maintain fair and stable pricing with regional payors."
The acquisition is expected to close in April, 2012. Total purchase consideration for the acquisition is undisclosed.
About RadNet, Inc.
RadNet, Inc. is the largest provider of fixed-site outpatient diagnostic imaging services in the United States through a network of 233 owned and/or operated outpatient imaging centers (inclusive of 20 facilities held in Joint Ventures). RadNet's core markets include California, Maryland, Delaware, New Jersey, New York and Rhode Island. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 6,300 employees. For more information, visit http://www.radnet.com.
RadNet, Inc.
Mark Stolper
310-445-2800
Executive Vice President and Chief Financial Officer