RadNet has spent over $54M on acquisitions so far in 2024

Imaging center operator RadNet Inc. has spent over $54 million on acquisitions so far in 2024, according to a new filing with the Securities and Exchange Commission.

Most recently, the Los Angeles-based radiology provider acquired artificial intelligence firm Kheiron Medical Technologies for $1 million. RadNet first announced the deal in October but did not reveal the purchase price until its latest 10-Q quarterly report, filed on Nov. 12. 

Meanwhile, several of the other acquisitions and their price tags were already previously disclosed. These included the February “tuck-in” purchase of Antelope Valley Imaging and its three imaging centers in north Los Angeles County for $3.53 million. Another $10.34 million went toward the March procurement of Grossman Imaging Centers in California, with two locations in Oxnard and two more in Ventura. 

Previously undisclosed, RadNet spent about $2.9 million to acquire Global Imaging LLP and its single imaging center in Sugar Land, Texas, on Sept. 1, the SEC filing revealed. Another $3 million went toward the purchase of the Stanislaus Surgical Hospital’s single imaging center in Modesto, California, acquired on Sept. 16. 

“The purpose of these acquisitions was to expand our imaging business into Houston, Texas, a new market, and to strengthen our presence in the California market,” RadNet reported in the regulatory filing. 

RadNet announced its Houston expansion in February, marking the company’s first new geography since 2020. Other subsequent deals in the Lone Star State have included the $22.7 million purchase of Houston Medical Imaging LLC and its nine centers on April 1. RadNet later spent $4.2 million more to buy U.S. Imaging Inc. and its six outpatient centers in Houston on June 1. 

“We believe this initial acquisition forms a strong platform from which to grow a new core network for RadNet,” President and CEO Howard Berger, MD, said of the HMI acquisition in February, with the centers handling 135,000 procedures and collecting $28 million in revenue last year. “We are confident of the opportunity for further acquisitions, de novo buildouts, health system partnerships and other means of expansion, which include bringing our AI and leading edge clinical and operating digital health solutions to the patient and referring communities of greater Houston.”

Finally, RadNet spent another nearly $7.37 million in March tied to three imaging centers in Southern California. The facilities are part of its Tri Valley Imaging Group, RadNet’s second joint venture deal with Providence health system. The two companies launched the brand in the spring, with RadNet contributing four centers to the new company while Providence pitched in three more. 

RadNet recently estimated that it owns or operates a total of 399 imaging centers concentrated around Arizona, California, Delaware, Florida, Maryland, New Jersey, New York and Texas. The company is planning further acquisitions in the future. In a previous earnings call, leaders noted that RadNet is sitting on almost $700 million in cash with plans to deploy the money toward growth. This could include more locations, along with incorporating additional AI firms into its DeepHealth division. 

“We have an active pipeline of acquisition opportunities, both small and large, that we’re considering. As you are well aware, we have a rather substantial cash balance and are looking to deploy that capital both on the DeepHealth side as well as on the imaging services side,” CEO Howard Berger, MD, told investors Nov. 11, according to a transcript of the earnings call. “We believe we’re also going to see opportunities…in the AI space, where we may have critical AI tools that we may feel that we can acquire in a very attractive manner, rather than build ourselves,” Berger added later. “While the AI tools that we have today are primarily…cancer screening tools for breast, lung and prostate, there are other work efficiency tools and improvements in diagnostic accuracy in other areas of our business for more of the routine work that we do, for example, in ultrasound and in X-ray, that we will be looking for, that will help drive productivity and accuracy for our radiologists.”

The recently acquired and London-based Kheiron Medical Technologies uses deep learning AI to help radiologists detect breast cancer. Leaders said last month they believe the company’s Mia^​​​​ (Mammography Intelligent Assessment) is a “strong” addition to its suite of products.

RadNet previously acquired DeepHealth in 2020 for over $40 million and Dutch AI firms Quantib and Aidence in 2022 for a total of nearly $100 million. Executive VP and Chief Financial Officer Mark Stolper declined to discuss the $1 million purchase price for Kheiron or its comparison to previous RadNet AI acquisitions. 

Amine Korchi, MD, a radiologist, entrepreneur and healthcare commentator based in Switzerland, posted about the deal and SEC filing on social media earlier this week. He speculated whether the transaction may also include other undisclosed terms, such as performance-based payouts or the issuance of RadNet common stock to help inflate the final purchase price. 

“For a company with CE-marked software already deployed in Europe and U.K., great clinical validation and publications in top-tier medical journals, this price feels surprisingly low,” Korchi wrote on LinkedIn this week. “Sure, competition is tough, adoption cycles are long, and maybe Kheiron was struggling financially. But this also highlights something bigger: In healthcare AI, it’s not just about having the best technology or clinical proof. You need a strong commercial organization, a solid sales strategy, and flawless execution to make it all work.” 

“Timing matters, too,” he added. “Being too early with an idea that decision-makers or workflows aren’t ready for can feel like failure. Even with great tech and evidence, success isn’t guaranteed—especially if the market isn’t ready or if the business side isn’t well-executed.”