RadNet has completed the acquisition of Inter-County Imaging in Yonkers, N.Y., from Medical Resources, and has signed a definitive asset purchase agreement with Medical Resources to acquire the assets of an additional nine imaging centers in New Jersey. The completion of the acquisition of the nine additional centers in New Jersey is expected to close around May 31.
The 10 facilities should add approximately $20 million of revenue to RadNet on an annualized basis. RadNet is acquiring the assets, excluding working capital for a cash price of $2.65 million. No debt or liabilities are being assumed.
In conjunction with the acquisitions, RadNet plans to contract with Diagnostic Radiology Associates to provide professional medical interpretation at the New Jersey facilities. The professional radiology services at the Yonkers facility will be provided by Hudson Valley Radiology Associates, RadNet's existing contracted Radiology Group for its Rockland County, N.Y. cluster of centers.
"The economics of this transaction are compelling, and further our stated goals of deleveraging our balance sheet and producing free cash flow. By expanding our reach just south of our Rockland County cluster into Northern New Jersey, we create further opportunities for consolidation, market clout and cost savings," said Howard Berger, MD, president and CEO of RadNet.