Imaging services provider RadNet has agreed to buy teleradiology and in-hospital radiology staffing services provider Onrad for $350 million in cash and 5 million shares of RadNet common stock.
Onrad’s shareholders could also receive an earnout of up to $210 million if the company hits EBITDA targets for 2027. RadNet can pay that earnout in cash, stock, or a combination. The deal is expected to close in early 2027, subject to regulatory review and customary closing conditions, RadNet said.
“Connecting RadNet’s established AI-enabled digital health technology and imaging center operational expertise with Onrad’s teleradiology and professional staffing solutions unites the capabilities needed to address the entire continuum of diagnostic imaging under one company," said RadNet President and Chief Executive Officer Howard Berger, MD, in a statement.
Through more than 130 contracted radiologists, Onrad provides remote final-read interpretations and in-hospital professional radiology staffing, including interventional radiology. It serves more than 225 hospital facilities in 26 states. Onrad is a portfolio company of Housatonic Partners.
After closing, Onrad will form the basis of a third reportable operating segment for RadNet, called Radiology Professional Services. It will sit alongside the company’s outpatient imaging center operations and its DeepHealth AI and digital health business. RadNet said that pairing Onrad’s teleradiology and staffing services with DeepHealth’s AI technology will help address the gap between growing imaging demand and the supply of radiologists, including by supporting case prioritization.
