RadNet has executed a definitive agreement to acquire the assets of West Coast Radiology, which include five multi-modality imaging centers in Orange County, Calif.
The facilities operate a combination of MRI, CT, ultrasound, mammography, x-ray and other related modalities. The five centers should add approximately $17 million of revenue to RadNet on an annualized basis.
"This transaction significantly strengthens our position in Orange County, Calif.,” said Howard Berger, MD, president and CEO of RadNet, adding, "Tuck-in transactions like this one are important in furthering our strategy of becoming the significant outpatient provider to our regional payors, while strengthening our local branding. The larger we get in our medical communities, the more opportunities we have to drive cost efficiencies and to maintain fair and stable pricing with regional payors."
The acquisition is expected to close in April 2012. Total purchase consideration for the acquisition is undisclosed.