RadNet, Inc., a Los Angeles, California-based provider of outpatient diagnostic imaging services through a network of 212 fully-owned and operated outpatient imaging centers, on Tuesday reported that it has completed an acquisition of the vast majority of the U.S. imaging operations of CML HealthCare Inc. (CML), Toronto, Ontario.
The acquisition encompasses 21 imaging facilities in Maryland, Delaware , and Rhode Island. It includes the purchase of two operating subsidiaries of CML, American Radiology Services (ARS) and The Imaging Institute (TII). ARS operates 15 freestanding outpatient imaging facilities in Maryland (among them two facilities held in joint ventures with hospital partners) and one facility in Delaware.
In addition to the imaging centers, ARS provides on-site staffing and professional interpretation services to five Maryland hospitals and teleradiology services to nine additional hospitals and radiology group customers. TII operates five imaging facilities in the Cranston, Warwick, and Providence local markets in Rhode Island. On an annualized basis, ARS and TII perform over 400,000 imaging procedures at their imaging centers.
Aggregate consideration for the purchase totaled approximately $40.2 million, consisting of approximately $28.2 million in cash, $9 million in a Seller Note. and approximately $3 million of assumed equipment-related debt. In addition, as part of the transaction, approximately $5.5 million of debt obligations will be assumed within the two Maryland joint ventures.
RadNet has also agreed to provide certain management services involved in the operation of two additional Maryland imaging centers owned by ARS. The two centers are expected to be sold prior to the end of the first quarter of 2012 to the Johns Hopkins Health System Corporation under terms of a purchase agreement executed between ARS and Johns Hopkins prior to the acquisition.
The acquisition increases the number of RadNet-owned imaging centers in Maryland and Delaware from 61 to 77. “We anticipate the acquired ARS and TII operations could initially provide approximately $70 million of annualized revenue,” noted a statement issued by the company.
To read the press release, click here: http://www.radnet.com/newsDETAIL.php?recordID=446