RadNet Announces Agreement to Acquire the Papastavros Group of Imaging Centers in Delaware

LOS ANGELES--(BUSINESS WIRE)--RadNet, Inc. (NASDAQ:RDNT), a national leader in providing high-quality, cost-effective diagnostic imaging services through a network of owned and operated outpatient imaging centers, today reported that it has signed a definitive agreement to purchase substantially all of the assets of Papastavros’ Associates Medical Imaging and related entities for $18.0 million in cash plus the assumption of approximately $3.6 million of debt. The cash purchase price includes the purchase of certain real estate assets utilized by the business which will be sold simultaneously with the closing of the transaction to a third party at its then appraised value estimated to be between $11.5 million and $12.5 million. RadNet has agreed to lease the real estate from the new owner on a long-term basis. The cash purchase price (not including the separately acquired real estate) will be funded by a portion of the previously announced $25 million incremental term loan provided by GE Healthcare Financial Services in August 2007. The operations of Papastavros have approximately $24 million in annual revenue.