RadNet’s Joint Venture, New Jersey Imaging Network, Acquires the Imaging Operations of Montclair Radiology, Expanding its Presence in New Jersey

Rhea-AI Summary

RadNet, Inc. (NASDAQ: RDNT) announced its joint venture, New Jersey Imaging Network (NJIN), has acquired the outpatient radiology assets of Montclair Radiology, enhancing NJIN's presence in northern New Jersey. Montclair Radiology operates six imaging centers and serves a patient population of 16 million, performing over 200,000 procedures annually. The acquisition is expected to add over $40 million in annual revenue to NJIN, supporting RadNet's mission to provide high-quality, cost-effective imaging services, while also benefitting Montclair Radiology's established reputation in the community.

Positive

• Acquisition of Montclair Radiology expected to generate over $40 million in annual revenue.
• Montclair Radiology's established brand enhances NJIN's market presence.
• Synergies expected from combining operations, leading to improved service delivery.

Negative

• None.

LOS ANGELES, Oct. 11, 2022 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services, today reported its joint venture, New Jersey Imaging Network (NJIN), has acquired the outpatient radiology assets of Montclair Radiology, the owner of six imaging centers in northern New Jersey.

For more than 75 years, Montclair Radiology has been a leading provider of diagnostic imaging in northern New Jersey, servicing an area encompassing a patient population of 16 million. Montclair Radiology owns and operates six multimodality centers in Montclair, West Caldwell, Nutley, Verona, Jersey City and Hoboken, providing MRI, CT, PET/CT, x-ray, ultrasound, mammography and other related procedures. Montclair Radiology performs over 200,000 procedures per year and is projected to add over $40 million of revenue on an annual basis to NJIN.

Dr. Howard Berger, Chairman and Chief Executive Officer of RadNet, noted, “We are pleased to announce this transaction. Since its formation in 2015, NJIN has grown into a leading provider of outpatient imaging in northern and central New Jersey, providing high-quality, lower cost and convenient services as an alternative to more expensive hospital-based imaging. Montclair Radiology’s long-standing brand has been a fixture in the markets it serves, and its high-quality reputation for delivering outstanding patient services is symbiotic with that of our existing NJIN operations.”

Dr. Michael Pollack, President of Montclair Radiology, shared, “The physicians and employees of Montclair Radiology are excited about this opportunity to affiliate with and become part of NJIN.  Our medical group has gained the trust of patients and referring physicians in northern New Jersey by providing exceptional radiology services.  NJIN and RadNet will provide the management and imaging expertise needed to grow our practice and to allow our physicians to focus on patient care.  We are confident that our employees will have a strong future with NJIN in this dynamically changing healthcare landscape.”

Montclair Radiology’s financial advisor was Ziegler and its legal advisor was Waller Lansden Dortch & Davis, LLP.

About RadNet, Inc.

RadNet, Inc., is the leading national provider of freestanding, fixed-site diagnostic imaging services and related information technology solutions (including artificial intelligence) in the United States based on the number of locations and annual imaging revenue. RadNet has a network of 353 owned and/or operated outpatient imaging centers. RadNet's markets include Arizona, California, Delaware, Florida, Maryland, New Jersey and New York. Together with affiliated radiologists, inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 9,000 employees. For more information, visit http://www.radnet.com.

About Ziegler

Ziegler is a privately held investment bank, capital markets and proprietary investments firm. Specializing in the healthcare, senior living and education sectors, as well as general municipal and structured finance, enables it to generate a positive impact on the communities it serves. Ziegler provides its clients with capital raising, strategic advisory services, equity and fixed income sales & trading and research. For more information, visit https://www.ziegler.com/radiology/

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are expressions of our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, and anticipated future conditions, events and trends. Forward-looking statements can generally be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements in this press release include, among others, statements we make regarding response to and the expected future impacts of COVID-19, including statements about our anticipated business results, balance sheet and liquidity and our future liquidity, burn rate and our continuing ability to service or refinance our current indebtedness.

Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements, including anticipated procedural volumes and revenue derived from the acquired Montclair Radiology assets.

Any forward-looking statement contained in this current report is based on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of changed circumstances, new information, future developments or otherwise, except as required by applicable law.

CONTACTS:

RadNet, Inc.

Mark Stolper, 310-445-2800

Executive Vice President and Chief Financial Officer

FAQ

What is the significance of RadNet's acquisition of Montclair Radiology?

RadNet's acquisition is significant as it is projected to add over $40 million in annual revenue to New Jersey Imaging Network, enhancing its presence in northern New Jersey.

How many imaging centers does Montclair Radiology operate?

Montclair Radiology operates six multimodality imaging centers in northern New Jersey.

What services does Montclair Radiology offer?

Montclair Radiology provides MRI, CT, PET/CT, x-ray, ultrasound, mammography, and other related diagnostic imaging procedures.

How will the acquisition impact RadNet's market strategy?

The acquisition will strengthen RadNet's market strategy by expanding its service offerings and enhancing its competitive position in the outpatient imaging sector.