RadNet Agrees to Acquire Teleradiology Provider ONRAD for $350 Million Plus Stock
The outpatient imaging operator would add hospital radiology staffing and remote reads as a third business segment, with an earnout worth up to $210 million.
Key points
- ONRAD shareholders are to receive a $350 million cash payment and 5 million RadNet shares at closing, plus an earnout of up to $210 million tied to 2027 EBITDA targets.
- RadNet expects ONRAD to add $190 million to $200 million of revenue and $60 million to $65 million of adjusted EBITDA in its first year after closing.
- ONRAD would become RadNet's third reportable segment, Radiology Professional Services; closing is expected in early 2027.
RadNet, the outpatient diagnostic imaging operator, has signed a definitive agreement to acquire ONRAD, a provider of teleradiology and in-hospital radiology staffing, the company announced on Oct. 26.
At closing, ONRAD shareholders will receive a cash payment of $350 million and 5 million shares of RadNet common stock, subject to customary adjustments. An additional earnout worth up to $210 million is payable if ONRAD hits target EBITDA for 2027; RadNet may pay it in cash, stock or a combination. The transaction is expected to close in early 2027, subject to customary regulatory review and closing conditions.
What ONRAD does
ONRAD provides remote teleradiology final-read interpretations and in-hospital professional radiology staffing, including interventional radiology, for hospitals, health systems and other imaging sites, through more than 130 contracted radiologists, according to RadNet. RadNet said the business supports more than 225 hospital facilities across 26 states.
RadNet said ONRAD has grown revenue between 10% and 20% a year over the last several years with adjusted EBITDA margins above 30%, and described it as a capital-light, high-margin business. RadNet expects ONRAD to add $190 million to $200 million of revenue and $60 million to $65 million of adjusted EBITDA in its first year of operation after closing.
ONRAD is a portfolio company of Housatonic Partners. Robert W. Baird & Co. is serving as ONRAD's exclusive financial advisor.
A third segment for RadNet
Upon closing, ONRAD will become the foundation of a third reportable operating segment, Radiology Professional Services. RadNet currently runs outpatient imaging centers and develops AI-enabled software through its DeepHealth digital health business, and it said the combination would let it offer radiology services across hospitals, freestanding outpatient centers, physician offices, urgent care centers and freestanding emergency departments.
RadNet pointed to a staffing gap as part of its rationale, saying U.S. imaging demand growth is outpacing the supply of trained radiologists. It said it plans to integrate AI-enabled technology with ONRAD's teleradiology and staffing services to support case prioritization and better match interpretation capacity to demand. RadNet also noted that hospitals and health systems account for more than half of U.S. diagnostic imaging volume, a market the deal would expand its reach into.
"This is the next step in building an imaging company with comprehensive solutions that brings technology, radiology professional services and imaging operations together to address some of healthcare's most pressing challenges and needs," said Dr. Howard Berger, RadNet's president and CEO.
Dave Engert, ONRAD's president and CEO, said the company has built relationships with hospitals and health systems for 20 years. "Joining RadNet not only gives us the scale, resources and technology to meet the growing needs of our current and prospective customers, but it also enables us to offer a unique imaging model that addresses the full continuum of care from outpatient imaging centers to the acute care environment," he said.
RadNet and ONRAD management scheduled a conference call for Oct. 27 to discuss the transaction.
Sources
- RadNet, Inc. Announces Agreement to Acquire ONRAD, Inc. (Form 8-K, Exhibit 99.1), RadNet via SEC EDGAR, October 26, 2026