RadNet Agrees to Buy ONRAD, Adding a Radiology Platform Serving More Than 225 Hospitals

RadNet, which runs freestanding outpatient imaging centers and markets radiology IT and AI solutions under its DeepHealth brand, said on October 26, 2026, that it had signed a definitive agreement to acquire ONRAD, Inc. ONRAD has more than 130 contracted radiologists supporting more than 225 hospital facilities in 26 states. It provides remote teleradiology final reads and in-hospital radiology staffing, including interventional radiology. If the deal closes, hospital reading coverage, outpatient imaging and AI offerings would sit under one owner, a company that also markets AI-enabled digital health solutions. The announcement specifies no change to hospital contracts or reading workflows.

The deal hasn’t closed. RadNet expects it to close in early 2027, subject to customary regulatory review and closing conditions. According to RadNet’s press release, filed with the SEC as Exhibit 99.1 to a Form 8-K, ONRAD’s shareholders would receive $350 million in cash and 5 million RadNet shares at closing, subject to customary adjustments. They could also receive an earnout of up to $210 million tied to 2027 EBITDA. RadNet describes itself as “a leading national provider” of freestanding, fixed-site outpatient imaging.

What RadNet is paying for ONRAD

RadNet projects that ONRAD will add $190 million to $200 million in revenue and $60 million to $65 million in Adjusted EBITDA in its first year after closing. Adjusted EBITDA is a non-GAAP measure, and the release provides no reconciliation for the ONRAD figures. The 5 million shares come on top of the cash, at a value that depends on RadNet’s stock price.

RadNet also said ONRAD’s annual revenue has grown 10% to 20% over the last several years, with Adjusted EBITDA margins above 30%. The first-year projection of $60 million to $65 million on $190 million to $200 million works out to roughly 30% to 34%.

The earnout is the most loosely defined part of the price. It’s payable if ONRAD meets a 2027 EBITDA target, and RadNet can pay it in cash, stock or a mix. The release does not disclose the target or the earnout formula, and it does not show what EBITDA threshold would trigger payment or how the payment would be calculated.

Radiology Professional Services becomes a third RadNet segment

After closing, ONRAD would become the foundation of a new reportable segment, Radiology Professional Services. It would sit alongside RadNet’s outpatient imaging business and DeepHealth. That changes how RadNet presents itself to investors: physician reading services would get their own reported results.

The deal isn’t RadNet’s first step into teleradiology. The company’s own boilerplate already lists “teleradiology professional services” among its offerings. What the acquisition does is expand RadNet into hospital-based radiology and add a professional services platform.

ONRAD is a portfolio company of Housatonic Partners, and Robert W. Baird & Co. is its exclusive financial advisor. Dave Engert is ONRAD’s president and CEO. On RadNet’s side, the announcement names Dr. Howard Berger, president and CEO, and Mark Stolper, executive vice president and CFO.

RadNet’s case for buying a hospital radiology group

RadNet’s argument rests on two premises. Citing an analysis by Signify, the company said hospitals account for more than 50% of U.S. imaging volume. It also said demand for imaging is outpacing the supply of radiologists. On that basis, RadNet presents the ONRAD acquisition as a way to expand its hospital-based services amid what it describes as a radiologist shortage.

The efficiencies, lower costs and better patient care RadNet expects from the combination are forward-looking statements. They describe what the company intends, not anything that has happened yet.

RadNet scheduled a conference call for 8:00 a.m. ET on October 27, 2026, the morning after the announcement.

What the announcement leaves open

The announcement identifies no specific antitrust filing or agency review. Nor does it address the questions that matter most inside those hospital facilities. Will hospital contracts, pricing or the terms under which ONRAD’s radiologists work change under RadNet? Will DeepHealth’s tools reach ONRAD’s reading workflow? Those answers affect the radiologists signing reports and the department leaders who negotiate coverage.

About the sources: The deal terms, projections and rationale come from RadNet’s press release. AuntMinnie.com reported the same terms on October 26, 2026, drawing on RadNet’s announcement and quoting the same statement from Berger.