RadNet was founded by six medical doctors, including Dr. Howard Berger, our Chairman and Chief Executive Officer. At its inception, RadNet provided billing and administrative services to radiology groups in the Los Angeles area, and it opened its first imaging center across from Cedars-Sinai Medical Center in 1981.
In 1990, Dr. Berger and Dr. Michael Krane, our Director of Utilization Management, purchased the interests of their four other partners, and became the sole owners of RadNet. In June 1992, RadNet was acquired by Primedex Health Systems, Inc., a publicly traded company that, at the time, was engaged in providing management, administrative, and financial services to medical clinics focused on workers compensation claimants in the greater Los Angeles area.
Beginning in late 1993, because of the change in California workers compensation laws, Primedex divested itself of its workers compensation practice and began to focus exclusively on diagnostic imaging (RadNet).
In 1995, Howard Berger became the largest individual shareholder of Primedex through his purchase of shares from the then largest shareholder. Since 1994, RadNet has grown significantly through internal growth (same-store sales and the opening of de novo centers) and strategic acquisitions. Prior to the acquisition of Radiologix in 2006, RadNet's largest acquisitions to date include the purchases of Tower Imaging in 1994 and Diagnostic Imaging Systems beginning in 1996.
In July 2004, RadNet completed a refinancing and restructuring of its balance sheet which included securing a $20 million credit facility with Wells Fargo Foothill. In November of 2004, RadNet repurchased a portion of its debt at a discount through issuing $19.2 million of Senior Secured Notes to Post Advisory Group, a Los Angeles-based investment management firm which is part of the Principal Financial Group. In March 2006, RadNet completed a $161 million re-capitalization through a syndicated loan transaction arranged by GE. In November 2006, in conjunction with its purchase of Radiologix, RadNet completed the funding of $405 million through a syndicated loan transaction arranged by GE.
RadNet continues to focus on growth through adding additional capabilities to its existing centers and through strategic acquisitions.