Los Angeles-based firm RadNet announced on March 15 it entered into letters of intent to acquire Truxtun Radiology Medical Group and the New Jersey operating subsidiary of Health Diagnostics.
Los Angeles-based firm RadNet announced on March 15 it entered into letters of intent to acquire Truxtun Radiology Medical Group and the New Jersey operating subsidiary of Health Diagnostics. Health Diagnostics has four locations in New Jersey: Edison, Freehold, Green Brook, and Old Bridge.
In their quarterly report, RadNet says it expects the cash consideration for the acquisitions will be approximately $24.5 million, plus 375,000 shares of common stock.
On the day of the announcement RadNet’s stock price closed 19 cents higher at $3 per share.
The acquisitions are not the only ones this year. On Jan. 1 RadNet acquired Union Imaging Center in N.J.
“All three acquisitions are of high quality multi-modality operators, which will strengthen our presence and competitive position in existing core markets of RadNet,” Dr. Howard Berger, RadNet’s chairman and CEO, said in the earnings release.
RadNet, founded in 1980, has approximately 4000 employees and operates in seven states: California, Maryland, Delaware, New Jersey, New York, Florida, and Kansas. RadNet. It has a network of 175 owned and operated outpatient imaging centers.
Dr. Girish Patel, who founded Bakersfield, CA-based Truxtun Radiology Medical Group, will remain as medical director of Truxtun for five years.
“This offer gave him the opportunity to plan for his eventual exit without leaving the business he founded 27 years ago, and with the assurance the business will continue even after he retires,” said Chip Robinson, chief operating officer of Truxtun.
The sale is expected to close sometime in April.