RadNet executes definitive agreement to acquire imaging centers in Maryland

RadNet, Inc. (Nasdaq:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 201 fully-owned and operated outpatient imaging centers, today reported it has executed a definitive agreement to acquire five multi-modality imaging centers in Maryland from Diagnostic Health Corporation for an undisclosed combination of cash and the assumption of certain liabilities.

The facilities located in Bowie, Chevy Chase, Frederick, Rockville and Waldorf operate a combination of MRI, CT, ultrasound, mammography, x-ray and other related modalities. The five centers should add approximately $10 million of revenue to RadNet on an annualized basis.

Dr. Howard Berger, President and Chief Executive Officer of RadNet noted, "This transaction strengthens our leading position in Maryland. With these facilities, we will further penetrate the Bowie, Rockville and Frederick markets, where we already operate existing facilities. The facilities in Chevy Chase and Waldorf are attractive geographic expansion opportunities that bolster the reach and capabilities of our Southern Maryland portfolio."

Dr. Berger added, "Tuck-in transactions like this one are important to us as we continue to make ourselves the significant outpatient provider of 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. We remain extremely committed to further penetrating Maryland and all of our other core markets."

The acquisition is expected to close in April, 2011.