RadNet Buys 21 Medical Imaging FacilitiesTuesday, November 8, 2011
RadNet has purchased 21 imaging facilities in Maryland, Delaware and Rhode Island, comprising most of the U.S. operations of CML HealthCare Inc.
The price for the acquisition was $40.2 million. In conjunction with the acquisition, RadNet increased its credit line by $21 million to $121 million. The increased borrowing capacity is to fund further acquisitions and provide working capital.
In a separate announcement, CML HealthCare, based in Mississagua, Ontario, announced it had decided to exit the U.S. health industry and concentrate its resources on the Canadian market.
In a statement, RadNet Chief Executive Howard Berger said “a transaction like this furthers our strategy of achieving geographic concentration, efficiencies from overall scale and the provision of high-quality … offerings.”
RadNet of Los Angeles operates more than 200 facilities in the United States in which it provides outpatient diagnostic imaging services.
Shares of RadNet rose 35 cents or 15 percent to $2.75 Tuesday on the Nasdaq Stock Exchange.