RadNet agreed to buy teleradiology provider Onrad for $350 million upfront plus 5 million RadNet shares. Up to $210 million more is tied to a 2027 earnings target. The deal was announced October 26.
Onrad reads for more than 270 US customers with a network of more than 130 radiologists and offers 24-hour final interpretations. Hospitals were 96 percent of its sales last year and teleradiology is 81 percent of its revenue. RadNet expects it to add $190 million to $200 million of annual revenue and $60 million to $65 million of adjusted EBITDA in the first year.
The purchase creates a third RadNet operating segment, Radiology Professional Services, alongside imaging centers and digital health. CEO Howard Berger said health systems and joint venture partners are asking for help with interpretation and staffing rather than for AI tools, and that nearly every partner names radiologist coverage as the bottleneck. RadNet bought radiology AI company Gleamer for 230 million euros earlier this year.
For an imaging software startup, the buyer consolidating reading capacity is the same buyer deciding which algorithms sit in front of those readers.