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RadNet buys N.J. imaging centers for $17.2 million and stock

by Brendon Nafziger, DOTmed News Associate Editor | September 08, 2010
Imaging center chain RadNet Inc. inked a deal to buy five New Jersey imaging centers from Progressive Health LLC and own half of a sixth.

Los Angeles-based RadNet, which already operates almost 200 outpatient centers nationwide, said Wednesday it's buying the facilities for $17.2 million plus a warrant to buy 200,000 shares of RadNet stock.

The deal is expected to close in October, pending the transfer of operating licenses.
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The six centers are based in northern New Jersey, including Hackensack, Union City and Englewood Cliffs, and run high-tech imaging services such as MRI, ultrasound, CT and mammography. RadNet expects to add $14 million in revenue from the acquisition.

RadNet, which already runs 11 centers in the area, acquired since 2009, is "becoming the leading multimodality provider of outpatient imaging services in a very densely populated region," Dr. Howard Berger, the company's president and CEO, said in prepared remarks.

The managing principals of Progressive Health will lead the acquired facilities, RadNet said. William Farrell will become senior vice president of New Jersey Operations, and Robet Farrell will be the senior vice president and northeast development officer.

RadNet's stock inched up half a percent to reach $1.84 in recent trading.