RadNet, a network of fixed-site outpatient diagnostic imaging centers with over 200 locations nationwide, has acquired 21 imaging facilities in Maryland, Delaware and Rhode Island, which comprised the vast majority of the U.S. imaging operation of CML HealthCare.
The acquisition includes the purchase of two operating subsidiaries of CML, American Radiology Services (ARS) and The Imaging Institute (TII). ARS operates 15 free-standing outpatient imaging facilities in Maryland (including two facilities held in joint ventures with hospital partners) and one facility in Delaware. In addition to the imaging centers, ARS provides on-site staffing and professional interpretation services to five Maryland hospitals and teleradiology services to nine additional hospitals and radiology group customers. TII operates five imaging facilities in the Cranston, Warwick and Providence local markets in Rhode Island. On an annualized basis, ARS and TII perform over 400,000 imaging procedures at their imaging centers.
Aggregate consideration for the purchase was approximately $40.2 million, consisting of approximately $28.2 million in cash, $9 million in a seller note and approximately $3 million of assumed equipment-related debt. In addition, as part of the transaction, approximately $5.5 million of debt obligations will be assumed within the two Maryland joint ventures.