RadNet Signs a Definitive Agreement to Acquire the Imaging Operations of Kern Radiology, Further Expanding its Presence in Ke...
February 11 2019 - 6:00AM
RadNet, Inc. (NASDAQ: RDNT), a national leader in
providing high-quality, cost-effective, fixed-site outpatient
diagnostic imaging services today reported it has signed a
definitive agreement to acquire the outpatient radiology practice
of Kern Radiology Medical Group, Inc. (“Kern Radiology”), the owner
of five imaging centers in Bakersfield, California. The
transaction is expected to close in April.
For more than 50 years, Kern Radiology has
serviced the communities of Bakersfield and Kern County,
California, comprising over 380,000 and 800,000 people,
respectively. Its imaging centers, which employ approximately
200 team members, provide multimodality offerings including MRI,
CT, PET/CT, X-ray, Ultrasound, Bone Density, Nuclear Medicine and
Interventional procedures. In addition, Kern Radiology
provides radiology services to Bakersfield Memorial Hospital, Mercy
Southwest Hospital and Mercy Downtown Hospital. Kern Radiology
performs more than 200,000 exams each year and is expected to
contribute to RadNet approximately $25 million of revenue on an
annual basis.
Dr. Howard Berger, Chairman and Chief Executive
Officer of RadNet, noted, “We are pleased to announce this
transaction. In 2010, we entered the Bakersfield market
through the acquisition of Truxtun Radiology Medical Group.
Kern Radiology has been the other principal non-hospital-based
operator in this market. Over the last eight years, we have
become familiar with Kern’s well-respected operating capabilities
and clinical talents. Upon closing the transaction, we will
merge RadNet’s professional radiology organization in Bakersfield
into Kern’s, creating a clinical organization and operation that is
unparalleled in that marketplace. The combined practice will
increase access for patients and referring physicians to an
expanded service offering and cutting-edge technology.”
Dr. Bernard Maristany, President of Kern
Radiology, shared, “The physicians of Kern Radiology Medical Group
are excited about this opportunity to partner with RadNet.
Our medical group has gained the trust of patients and
referring physicians in Kern County by providing the highest
quality radiology services available. RadNet will provide the
management and imaging expertise needed to let our physicians
focus on patient care. We are confident Kern Radiology and
all of its employees will have a strong future with RadNet in this
ever changing healthcare environment.”
About RadNet, Inc.
RadNet, Inc. is the leading national provider of freestanding,
fixed-site diagnostic imaging services in the United States based
on the number of locations and annual imaging revenue. RadNet has a
network of 341 owned and/or operated outpatient imaging centers.
RadNet's core markets include California, Maryland, Delaware, New
Jersey and New York. In addition, RadNet provides radiology
information technology solutions, teleradiology professional
services and other related products and services to customers in
the diagnostic imaging industry. Together with affiliated
radiologists, and inclusive of full-time and per diem employees and
technicians, RadNet has a total of over 7,500 employees. For
more information, visit http://www.radnet.com.
CONTACTS:
RadNet,
Inc.Mark Stolper,
310-445-2800Executive Vice
President and Chief Financial Officer
RadNet (NASDAQ:RDNT)
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