Sawtelle-based diagnostic imaging services provider RadNet Inc. last week announced it was buying Nashua, New Hampshire-based AI-assisted mammography analysis company iCAD Inc. in an all-stock transaction valued at $103 million.
The acquisition promises to expand the reach of RadNet’s mammogram analysis technology across the globe. Until now, the company has focused on the domestic market.
The deal, which has been approved by each company’s board of directors, still needs approval from iCAD shareholders. Assuming that is obtained on schedule and other customary closing conditions are satisfied, the deal could close at or before the end of the third quarter, according to the companies’ joint announcement on April 15.
The deal price of about $3.61 per share was nearly double iCAD’s closing share price on April 14.
RadNet is the nation’s largest operator of stand-alone diagnostic imaging sites, with nearly 400 centers and 11,000 employees spread through seven states: Arizona, California, Delaware, Florida, Maryland, New York and Texas. The company last year provided nearly 2 million mammograms, or roughly 4% of all mammograms performed in the United States. RadNet posted $1.8 billion in sales last year.
In 2020, RadNet bought DeepHealth, an artificial intelligence company that was headquartered in Cambridge, Massachusetts, and began incorporating DeepHealth’s AI techniques into its radiological image analyses to improve the accuracy and early detection of cancers in mammography scans. The company has also marketed its AI-assisted analysis software under the DeepHealth brand to third parties.
iCAD also has specialized in AI-assisted analyses of mammography scans. Its technology can analyze the density of breast tissue and provides risk analysis for development of breast cancer. The company’s software package has been used in more than 50 countries; in the last five years, it has helped analyze more than 40 million mammograms.
Unlike RadNet, iCAD does not provide mammogram procedures.
iCAD to be folded into RadNet’s DeepHealth
Once the purchase is closed, RadNet plans to integrate iCAD and its AI technology into its own DeepHealth division. The aim is to expand AI-assisted mammogram analysis as rapidly as possible across the globe.
“Every 14 seconds, a woman is diagnosed with breast cancer worldwide, and in the United States alone, over 42,000 women are expected to die from breast cancer during 2025,” said Howard Berger, RadNet’s chief executive.
The two companies’ combined technological strengths “have the power to materially expand and improve patient diagnosis and outcomes on a global basis through further enabling accuracy and early-detection,” Berger added.
In a presentation to investors, RadNet said the acquisition will expand the company’s reach to a combined 10 million annual mammograms over 1,700 provider sites and more than 50 countries.
iCAD’s chief executive, Dana Brown, explained further in the deal announcement how the combined technologies would work.
“With current and future products in breast cancer detection, risk evaluation, density assessment and breast arterial calcification, we believe RadNet’s scale, access to data and clinical leadership will ensure our current and future products are brought to market, improving radiologist and patient workflow and clinical outcomes,” Brown said.
“Together, we will work to expand access to cutting-edge tools, accelerate innovation and advance our product roadmaps, empowering radiologists with more precise, efficient and scalable solutions that should ultimately improve patient care and outcomes,” she said.
Not surprisingly given the premium price that RadNet offered, iCAD shares shot up 59% on April 16 to close at $3.07. RadNet shares, on the other hand, closed down nearly 5% on April 16 to close at $50.52.
