RadNet acquires Truxtun Medical Group

Apr 16 2010

RadNet, Inc. (Nasdaq:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 185 fully-owned and operated outpatient imaging centers, today reported it has completed the previously announced acquisition of Truxtun Medical Group.

Subsequent to the end of the fourth quarter, the Company entered into a letter of intent to acquire the business of Truxtun Medical Group in Bakersfield, California. Truxtun operates four multi-modality facilities in Bakersfield, a Metropolitan Statistical Area with a population exceeding 800,000 residents in Kern County, California. Truxtun provides a broad range of services including MRI, CT, PET/CT, mammography, nuclear medicine, fluoroscopy, ultrasound, x-ray and related procedures.

 "We are very excited to welcome the many outstanding employees of Truxtun into the RadNet organization. Through its four multi-modality facilities, Truxtun has an exemplary reputation for providing high-quality service to the patients and referring community of the greater Bakersfield area. We believe that Truxtun will be a platform from which we can further grow in Bakersfield and surrounding areas in the Central Valley of California," said Dr. Howard Berger, President and Chief Executive Officer of RadNet.

Dr. Berger added, "Our recently completed financing transaction has positioned us with the financial flexibility and capability to capitalize on other similar opportunities in this and other markets. While we continue to pursue multi-modality assets in the markets in which we currently operate, we remain disciplined with respect to paying purchase multiples that are at or below RadNet's current leverage ratio."

As previously announced in March 2010, the Company entered into a letter of intent to acquire the New Jersey operating subsidiary of Health Diagnostics. The Company expects to complete this transaction within the next thirty days.