RadNet Inc., provider of outpatient imaging services, announced today that it has acquired Diagnostic Imaging Group LLC (DIG) for about $56.7 million. The deal will provide RadNet with about $70 million of additional revenue per year, according to the company.

“Diagnostic Imaging Group has been one of the premier operators in our industry, and has been in business about as long as RadNet,” Dr. Howard Berger, president and CEO of RadNet, said in a statement. “With this transaction, we establish a relationship with approximately 20 radiologists who currently service the DIG facilities through a contracted affiliated professional services entity.”

DIG was founded in 1985 and its headquarters is located in Hicksville, Long Island. The company owns and runs 17 imaging centers in Brooklyn, Queens, the Bronx, Manhattan and Nassau County, and employs over 600 people who conduct more than 750,000 imaging procedures each year.
With the addition of DIG’s facilities, RadNet now runs 56 facilities in New York City and in Rockland and Nassau Counties. Including its facilities in northern New Jersey, RadNet operates 74 facilities in the greater New York Metropolitan area.

“With over 20 million residents, the greater New York metropolitan area is an enormous marketplace for us,” said Berger. “The market has unique contracting and population health opportunities and I believe there are substantial additional growth opportunities on which we can capitalize.”

RadNet believes that it will bring “efficiencies and new expansion opportunities” to DIG by being able to service DIG’s referring physician communities and patient populations more effectively.

RadNet’s main markets are California, Maryland, Delaware, New Jersey, New York and Rhode Island and it owns and operates 293 outpatient imaging centers. The company employs a total of about 6,300 workers including affiliated radiologists and full-time and per diem technicians and employees.

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