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UPDATE 1-RadNet to buy imaging centers in New Jersey
September 8, 2010 / 11:08 AM / 7 years ago

UPDATE 1-RadNet to buy imaging centers in New Jersey

* To pay $17.2 mln and warrant to buy 200,000 shares

* To buy 5 imaging centers, 50 pct stake in sixth center

* Expects deal to add $14 mln to rev annually

Sept 8 (Reuters) - RadNet Inc (RDNT.O) said it agreed to acquire five imaging centers in northern New Jersey from privately held Progressive Health and a 50 percent stake in a sixth center for $17.2 million plus warrants to buy RadNet shares.

The outpatient diagnostic-imaging services provider, which operates regional networks comprising 180 diagnostic imaging facilities, said it will issue Progressive Health a warrant to purchase 200,000 common shares.

The company expects the centers, located in Englewood Cliffs, Union City, Hackensack, Bloomfield, Englewood and Rutherford, to add about $14 million to its annual revenue.

The Los Angeles-based company had said in April that it expected 2010 revenue of $540-$560 million. [ID:nWNAB3721]

RadNet, which provides imaging services in seven U.S. states, expects the deal to close in October, subject to transfer of certain New Jersey operating licenses.

The operational management of the six centers, which offer magnetic resonance imaging, computed tomography scans, ultrasound, mammography and x-ray, will be consolidated with the 11 New Jersey facilities that the company has acquired since 2009.

RadNet’s shares, which have more than halved in value since touching a 2-year high in April, closed at $1.83 Tuesday on Nasdaq. (Reporting by Shravya Jain in Bangalore; Editing by Unnikrishnan Nair)

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