RadNet to acquire teleradiology provider ONRAD in $350M deal
RadNet has agreed to acquire teleradiology and radiology staffing provider ONRAD for $350 million in cash, 5 million shares of RadNet common stock and potentially an additional $210 million earnout, according to a Monday announcement.
ONRAD provides remote final interpretations and in-hospital radiology staffing through a network of more than 130 contracted radiologists. Its services include interventional and diagnostic coverage for hospitals, health systems and other imaging providers. The move represents a bid by RadNet to expand its services into hospital-based radiology.
Following the acquisition, ONRAD will form the foundation of RadNet’s planned third reportable operating segment, Radiology Professional Services. The company’s existing businesses include an array of outpatient diagnostic imaging operations and DeepHealth, its AI-enabled digital health platform. RadNet said the acquisition will bring outpatient imaging operations, AI technology and radiology professional services under one company umbrella. This will allow it to serve customers across hospitals, freestanding imaging centers, physician offices, urgent care facilities and standalone emergency departments.
“This is the next step in building an imaging company with comprehensive solutions that brings technology, radiology professional services and imaging operations together to address some of healthcare’s most pressing challenges and needs,” Dr. Howard Berger, president and CEO of RadNet, said in a release. “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.”
RadNet cited the growing demand for imaging and a shortage of trained radiologists as some of the driving factors behind the deal. The company expects to combine ONRAD’s interpretation and staffing capabilities with DeepHealth’s AI tools to support radiology workflows from both administrative and clinical perspectives to account for staffing gaps.
Dave Engert, president and CEO of ONRAD, said joining RadNet will provide the company with additional scale, resources and technology.
“Joining RadNet not only gives us the scale, resources and technology to meet the growing needs of our current and prospective customers, but it also enables us to offer a unique imaging model that addresses the full continuum of care from outpatient imaging centers to the acute care environment,” Engert said. “The potential to further meet the ever-increasing demand for imaging services along with improving patient outcomes is what excites me most about our future together.”
The transaction is expected to close in early 2027, pending regulatory review and customary closing conditions.
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In addition to her background in journalism, Hannah also has patient-facing experience in clinical settings, having spent more than 12 years working as a registered rad tech. She began covering the medical imaging industry for Innovate Healthcare in 2021.