RadNet to Acquire ONRAD in $355 Mn Deal to Expand AI-Enabled Radiology Services

RadNet plans to integrate ONRAD’s services with its outpatient imaging network and DeepHealth’s AI-based digital health technology.

California-based RadNet, a radiology firm, has agreed to acquire ONRAD, a radiology services provider, in a $355 Mn deal to expand its radiology services across outpatient and hospital settings.

The acquisition will combine RadNet’s imaging operations and DeepHealth’s AI-powered digital health solutions with ONRAD’s teleradiology and radiologist staffing capabilities.

Under the agreement, RadNet will pay $350 Mn in cash and $5 Mn in shares upfront. The transaction also includes a potential additional earnout of up to $210 Mn, subject to ONRAD achieving specified EBITDA targets for 2027. The additional payment may be made in cash, stock or a combination of both, at RadNet’s discretion.

ONRAD provides teleradiology, hospital-based radiology and staffing services to hospitals, health systems and other diagnostic imaging facilities. The company has approximately 130 contracted radiologists, enabling it to support healthcare organisations that require professional image interpretation and radiology coverage.

RadNet plans to integrate ONRAD’s services with its outpatient imaging network and DeepHealth’s AI-based digital health technology.

By combining AI-based technology with ONRAD’s remote radiology interpretation and staffing services, RadNet aims to improve clinical workflows, support case prioritisation and align image interpretation capacity with demand.

“Connecting RadNet’s established AI-enabled digital health technology and imaging centre operational expertise with Onrad’s teleradiology and professional staffing solutions unites the capabilities needed to address the entire continuum of diagnostic imaging under one company. The acquisition will enhance RadNet’s portfolio of solutions for hospitals and health systems, outpatient freestanding centres, urgent care facilities, freestanding emergency departments and physician offices,” RadNet President and CEO Dr Howard Berger said.

By bringing imaging infrastructure, digital health solutions and radiologist capacity under one organisation, RadNet intends to broaden its service offering as healthcare providers seek ways to manage increasing imaging volumes.

The acquisition is expected to close in early 2027, subject to the applicable closing conditions.

The proposed acquisition will strengthen RadNet’s presence in hospital-based radiology while expanding its ability to support healthcare providers facing rising imaging demand and a shortage of trained radiologists.

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