Aiming to enter the teleradiology services market, imaging center chain RadNet has signed a definitive agreement to purchase teleradiology firm Imaging On Call.
RadNet of Los Angeles will pay $5.5 million for Imaging On Call, plus contingent compensation of up to an additional $2.5 million if the Poughkeepsie, NY-based firm achieves certain 2011 performance milestones.
In a statement, RadNet president and CEO Howard Berger said entering the U.S. teleradiology sector is a natural extension of many of the company's current activities. RadNet's approximately 350 contracted radiologists have utilized remote reading capabilities for many years to service the firm's facilities and hospital joint ventures, he said.
The acquisition of Imaging On Call will now provide RadNet with the infrastructure, operational platform, and customer relationships to provide these capabilities to organizations outside of RadNet, Berger said. In addition, a majority of Imaging On Call's customers overlap RadNet's current operating regions in the northeast U.S., offering an ideal platform for growth, he said.
RadNet also believes Imaging On Call will aid in augmenting the company's strategies for partnering with hospitals and accountable care organizations in joint ventures, regardless of where they are located.
Imaging On Call has been accredited by the Joint Commission for final and preliminary reads, and its currently contracted radiologists -- the majority of whom are based in the U.S. -- hold active licenses in 28 states and the District of Columbia, the companies said.
The deal is expected to close on or about December 31, and is subject to an approval vote by Imaging On Call's membership interest holders. RadNet expects Imaging On Call will initially add approximately $10 million in annual revenue.
Related Reading
RadNet sales grow, net loss narrows in Q3, November 11, 2010
Imaging On Call adds PACS backup option, November 9, 2010
RadNet completes eRad acquisition, October 1, 2010
RadNet to acquire eRad for $10.8M, September 13, 2010
Imaging On Call takes IDS technology, May 19, 2010
Imaging On Call expands services, March 22, 2010
Copyright © 2010 AuntMinnie.com
