Imaging services provider RadNet has signed a definitive agreement to acquire five imaging centers in northern New Jersey from Progressive Health. The Los Angeles-based firm will also take a 50% equity interest in a sixth center.
RadNet will pay $17.2 million plus a warrant to purchase 200,000 shares of RadNet common stock for the New Jersey facilities, located in Englewood Cliffs, Union City, Hackensack, Bloomfield, Englewood, and Rutherford (the last to be 50% owned by RadNet). The company expects the acquisition to contribute approximately $14 million in annual revenue.
In connection with the deal, Progressive Health managing principals will take on management roles in RadNet's New Jersey operations. William Farrell will become RadNet's senior vice president of New Jersey operations, while Robert Farrell will serve as senior vice president and northeast development officer.
The deal is expected to close in October and is subject to the transfer of certain New Jersey operating licenses to RadNet.
Related Reading
RadNet completes acquisition, August 12, 2010
RadNet adds to sales, net loss grows, August 10, 2010
RadNet buys NY and NJ facilities, April 28, 2010
RadNet refinances corporate debt, April 7, 2010
RadNet begins turnaround in Q4, March 16, 2010
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