RadNet has agreed to acquire ONRAD in a $355m deal positioned to advance its technology and service offering, as well as address rapid US imaging growth demand at a time in which the space is facing pronounced staffing shortages.
The outpatient diagnostic imaging specialist will pay Onrad $350m in cash and $5m in shares upfront. Anticipated to complete in early 2027, the deal’s terms also include the potential for an additional earnout of up to $210m upon achieving target EBITDA for 2027 that will be payable in cash, stock, or a combination thereof at RadNet’s discretion.
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Jefferies’ analysts described RadNet’s deal as a “sound transaction” likely to open “different hospital opportunities” to the company.
Onrad has a headcount of 130 contracted radiologists and provides teleradiology, in-hospital radiology, and staffing services for hospitals, health systems and other diagnostic imaging care sites.
RadNet highlighted that a primary strategic rationale behind the deal is that it will connect three businesses it views as complementary to advance its overall imaging provision. The combination of RadNet’s outpatient imaging operations and DeepHealth artificial intelligence (AI)-based digital health solutions with Onrad’s radiology services platform will bring together “comprehensive expertise” in the diagnostic imaging industry within one company, RadNet explained.
Once complete, the integration of these services is anticipated to “improve efficiencies, patient care, and lower costs”, RadNet added. Meanwhile, the California-headquartered company’s inheritance of Onrad’s in-hospital and remote professional radiology interpretation services platform also expands its presence into hospital-based radiology and helps it address the fact that US imaging demand growth is outpacing the supply of trained radiologists.
A report by the Association of American Medical Colleges (AAMC) forecasts that the radiologist shortfall in the US could reach almost 42,000 by 2036.
According to RadNet, acquiring Onrad strengthens its ability to address this gap by integrating its AI-based technology with Onrad’s teleradiology and professional staffing services to advance workflows, support case prioritisation and “better match” image interpretation capacity to demand.
Commenting on the deal, RadNet’s president and CEO, Dr Howard Berger, said: “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.”
AI is having a significant impact in the medical imaging space, a fact amply demonstrated by the US Food and Drug Administration’s (FDA) list of AI-based medical devices approved in 2026 – with the vast majority of approved devices indicated for radiology-based functions. According to GlobalData analysis, the AI market across healthcare is growing at a compound annual growth rate (CAGR) of around 37% and is expected to reach a $57.4bn valuation in 2029.
