RadNet acquires 9 imaging centers through 2 tuck-in transactions totaling $14M

RadNet Inc. has acquired a total of nine imaging centers across separate transactions, leaders revealed in a recent regulatory filing.

The two small “tuck-in” acquisitions included Antelope Valley Imaging, which has three outpatient centers in Lancaster, California, and two more in Palmdale—all in north Los Angeles County. RadNet paid $3.53 million for the business and completed the deal Feb. 1, according to a May 10 filing with the U.S. Securities and Exchange Commission.

“RadNet and Antelope Valley Outpatient Imaging Centers have joined forces to provide the most advanced radiology services, innovative technologies, cutting-edge software—with the best subspecialty trained radiologists at the helm,” AVOIC said in a recent social media post announcing its acquisition. “Our combined mission is to enable our providers to best expedite their patients’ care. We do this through faster, efficient service and more frequent availabilities—all provided with kind and gentle care,” the company added later.

Meanwhile, publicly traded, Los Angeles-based RadNet also recently acquired Grossman Imaging Centers for a total of $10.5 million, according to the same SEC filing. Both sides completed the deal March 31, with Grossman operating two centers in Oxnard, California, and two more in Ventura—both coastal cities west of Los Angeles in Ventura County.

CEO Howard Berger, MD, said during the Q1 earnings call that these smaller acquisitions will be an ongoing part of RadNet’s strategy. The company now owns or operates 375 outpatient centers concentrated in eight states: California, Maryland, Delaware, New Jersey, New York, Florida, Texas and Arizona.

“I think tuck-ins will be a continual part of our acquisition and growth opportunity,” Berger told investors on May 9, according to a transcript of the call provided by Seeking Alpha. “We find those to be very targeted in our existing markets, if you will, and both on the East Coast and West Coast, there's a constant pipeline of requests that we're getting for further opportunities in our existing markets, much like we demonstrated in Houston when we entered that market just this quarter, April 1. If there's other markets where we can find a good platform company to build a longer-term presence in a market, we would look at those. Those may become a little bit more expensive than the tuck-in acquisitions, but they do represent a longer-term platform to expand our reach. So, I think you can continue to see those along with the de novos as being a very important component of this year's growth.”

You can read our coverage of RadNet’s Q1 2024 earnings here, with the company tallying a “record” $432 million in revenue amid strong demand for radiology services.