RadNet to acquire ONRAD, adding hospital radiology services
RadNet announced a definitive agreement to buy ONRAD, a teleradiology and in‑hospital staffing provider. The transaction consists of $350 million in cash, $5 million in shares and a possible earnout of up to $210 million tied to 2027 EBITDA targets. ONRAD is projected to contribute $190‑$200 million of revenue and $60‑$65 million of adjusted EBITDA in its first year, and the deal is slated to close in early 2027 pending regulatory approval.
Why it matters
RadNet says the acquisition will immediately boost its top‑line and adjusted EBITDA and broaden its footprint into hospital‑based radiology, while modestly increasing leverage by about 0.4 times. The added high‑margin, capital‑light business is expected to enhance cross‑selling of RadNet’s AI‑enabled digital health platform.
Key facts
- 1RadNet agreed to acquire ONRAD for $350 million in cash and $5 million in shares. medicaldevice-network.com
- 2The deal includes a potential earnout of up to $210 million payable upon achieving target EBITDA for 2027. medicaldevice-network.com
- 3ONRAD is expected to add $190 million to $200 million of revenue to RadNet in its first year after closing. stocktitan.net
- 4ONRAD is expected to add $60 million to $65 million of adjusted EBITDA to RadNet in its first year after closing. stocktitan.net
- 5The transaction is expected to close in early 2027, subject to customary regulatory review and closing conditions. stocktitan.net
- 6RadNet’s net leverage is expected to be about 1.6 times to 1.7 times before the transaction, increasing by roughly 0.4 times in the short term. finance.yahoo.com
Open questions
- Material 4 states the deal is expected to close in 2024, conflicting with the early‑2027 timeline reported in materials 1 and 2.
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.