RadNet pays $33M to acquire cloud-based imaging solutions provider
RadNet Inc. is paying approximately $32.7 million (USD) to acquire a London-headquartered provider of imaging cloud storage services.
The Los Angeles company previously announced it had reached a deal to add Cimar UK to its ever-growing stable of technology solutions last November. Terms of the acquisition were not disclosed at the time, but RadNet revealed further details in a Jan. 30 filing with the U.S. Securities and Exchange Commission.
As part of the purchase agreement, Cimar is entitled to an aggregate of $27.3 million at closing of the transaction. Half of the amount is to be paid in cash and the other 50% in RadNet common stock, equal to about 190,924 shares in Cimar. RadNet said previously that it plans to integrate the company’s technology into its DeepHealth AI division.
“This acquisition marks a pivotal moment for Cimar,” Co-founder and CEO Howard Jenkinson said last November. “Through our integration with DeepHealth, we can scale our impact and expand access to services and solutions that provide a more seamless, connected and intelligent imaging experience.”
Founded in 2010, Cimar UK delivers cloud-based solutions for storing medical images, managing an “extensive” radiology infrastructure to enable the deployment of AI across various vendor platforms. Its products are used by 50% of National Health Service trusts and 80% of private U.K. hospital groups, RadNet estimated.
A previously established partnership between DeepHealth and Cimar currently underpins NHS England’s lung cancer screening program, the two noted. Cimar now provides the digital infrastructure connecting DeepHealth’s lung AI tool at over 90% of screening sites. The overseas partnership has demonstrated early success, RadNet reported, with 76% of lung cancers caught at earlier, more treatable stages compared to 29% historically.
The two together hope to create a “richer solution” for advancing care across the United Kingdom, according to the announcement. DeepHealth will seek to scale across both the U.K. and Europe, aiming to reach other screening and diagnostic programs, bringing the same model to more patients and hospital systems.
This marks the latest in a line of technology acquisitions for RadNet. Previous purchases have included ultrasound artificial intelligence vendor See-Mode Technologies ($29 million), breast AI companies iCAD ($103 million) and Kheiron Medical Technologies ($1 million), and remote MRI solutions provider Alpha RT ($5 million). RadNet also recently acquired imaging centers from radiology groups in Florida and Indiana. Altogether, the company now operates over 430 freestanding centers across
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.