×

RadNet Expands Its New York City Presence Through the Acquisition of New York Radiology Partners

LOS ANGELES, April 14, 2015 (GLOBE NEWSWIRE) -- RadNet, Inc. (Nasdaq:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 259 owned and operated outpatient imaging centers, today reported it acquired New York Radiology Partners ("NYRP") of Manhattan, New York for approximately $34 million, which includes the assumption of approximately $4.0 million of debt. The acquisition should provide RadNet with approximately $45 million of additional revenue on an annual basis.

NYRP has been an operator in New York City since 1972 and was the first free-standing operator in Manhattan and the surrounding boroughs to have been designated Diagnostic Imaging Centers of Excellence by the American College of Radiology. NYRP wholly owns and operates eight multimodality facilities in Manhattan.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, noted, "We are delighted to complete our second significant transaction in Manhattan. The NYRP facilities are highly complementary to the Lenox Hill operations and other Manhattan centers we have purchased since entering this market at the beginning of 2013. While Lenox Hill and NYRP are already two of the highest quality and most reputable non-hospital imaging operators in Manhattan, I believe there will be opportunity for improvements from the sharing of best practices and from the combined breadth and scale of the businesses. We continue to believe that Manhattan, a market that is home to almost 1.7 million residents and that swells to almost four million people on work days, has further opportunities for us to expand our size and capabilities. Although a significant amount of imaging is still completed by large hospital systems in this market, our centers represent a lower cost, highly efficient alternative that is focused on providing superior service and access for patients."

"This acquisition greatly enhances the services we can offer health plans, referring physicians, large employers, medical groups and most importantly, the patient population of Manhattan. The transaction adds over 800 new procedures per day (over 200,000 annually), and strengthens our professional physician capabilities in Manhattan," added Dr. Berger.

Michael Abiri, M.D., President of NYRP, whose medical group will continue to provide professional services at the NYRP facilities, noted, "On behalf of the physicians and employees of NYRP, we are very pleased to be part of the RadNet family. We are eagerly looking forward to the benefits that RadNet can bring to our operation, including providing us the ability to grow more effectively within our markets and to more efficiently service our referring physician communities and loyal patient populations. We are further excited about the expanded growth, efficiency and contracting opportunities that may likely arise from RadNet's already strong presence in the Manhattan marketplace."

About RadNet, Inc.

RadNet, Inc. is the leading national provider of freestanding, fixed-site diagnostic imaging services in the United States based on the number of locations and annual imaging revenue. RadNet has a network of 259 owned and/or operated outpatient imaging centers. RadNet's core markets include California, Maryland, Delaware, New Jersey, New York and Rhode Island. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 6,300 employees. For more information, visit http://www.radnet.com.

About New York Radiology Partners.

Since 1972, New York Radiology Partners has been one of the premier outpatient diagnostic imaging service providers in Manhattan. NYRP operates eight multi-modality imaging facilities in Manhattan. NYRP's facilities offer MRI, CT, PET/CT, Ultrasound, Mammography and X-ray modalities. The locations are 5 Columbus Circle (Columbus Circle Imaging and Central Park Women's Imaging), 1090 Amsterdam Avenue (Morningside Radiology), 425 West 59th Street (Midtown Medical Pavilion), 215 East 95th Street (East 95th Street Radiology), 424 East 89th Street (East Manhattan Diagnostic Imaging), 144 4th Avenue (Union Square Diagnostic Imaging) and 147 West 15th Street (Union Square Diagnostic Imaging West). For more information, visit http://www.nyrp.com/.

CONTACT: RadNet, Inc. Mark Stolper, 310-445-2800 Executive Vice President and Chief Financial Officer

Source:RadNet, Inc.