LOS ANGELES - RadNet, Inc. (NASDAQ: RDNT), a prominent provider of outpatient diagnostic imaging services, announced today its definitive agreement to acquire six imaging centers in the Houston, Texas area.
This move follows the recent completion of its acquisition of seven centers from Houston Medical Imaging, LLC on April 1, 2024. With the latest transaction expected to close by the end of the second quarter of 2024, RadNet will operate a total of 13 centers in the Houston metropolitan area.
The six centers currently operating under the American Health Imaging brand offer a variety of services including MRI, CT, mammography, ultrasound, and x-ray. Post-acquisition, these centers will be rebranded as Houston Medical Imaging. This expansion is projected to contribute over 100,000 additional procedures and $15 million in annual revenue for RadNet.
Howard Berger, MD, President and CEO of RadNet, expressed enthusiasm about the company's growth in Houston, citing the region's large population and rapid expansion as key factors for the strategic move. He also indicated plans to introduce RadNet's artificial intelligence and digital health solutions to the local healthcare community.
The completion of the asset acquisition is contingent on customary closing conditions. RadNet, which is based in Los Angeles, is recognized as the leading national provider of freestanding, fixed-site diagnostic imaging services in the United States by number of locations and annual imaging revenue. The company operates 366 outpatient imaging centers and employs approximately 9,700 people across various states.
This expansion underscores RadNet's strategy to strengthen its presence in key metropolitan areas and enhance its service offerings. The information reported is based on a press release statement.
InvestingPro Insights
As RadNet, Inc. (NASDAQ: RDNT) continues its expansion in the Houston area, the company's financial health and market performance become increasingly relevant to investors. According to recent data from InvestingPro, RadNet boasts a market capitalization of $3.61 billion USD, reflecting its substantial presence in the diagnostic imaging services sector. Despite a high P/E ratio, which currently stands at 1010, and an even higher adjusted P/E ratio for the last twelve months as of Q4 2023 at 1242.3, the company has shown notable revenue growth. Over the same period, RadNet's revenue grew by 13.05%, with a quarterly revenue growth in Q4 2023 of 9.51%.
InvestingPro Tips highlight several key factors about RadNet's performance and outlook. Analysts are optimistic about the company's income prospects, with net income expected to grow this year and two analysts revising their earnings upwards for the upcoming period. Moreover, RadNet is trading near its 52-week high, with a price 97.85% of that peak, and has had a strong return over the last three months, with a 33.45% price total return. These insights suggest that RadNet's strategic acquisitions may be well-timed to capitalize on its current market momentum.
For investors interested in a deeper dive into RadNet's financials and future prospects, InvestingPro offers additional tips and metrics. There are 16 more InvestingPro Tips available for RadNet, which can provide a more comprehensive understanding of the company's valuation multiples, stock price volatility, and profitability. To access these insights and enhance your investment strategy, use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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