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LOS ANGELES - RadNet, Inc. (NASDAQ:RDNT), a leading diagnostic imaging service provider with a market capitalization of $4.27 billion, announced the acquisition of See-Mode Technologies, a company specializing in artificial intelligence for ultrasound imaging. According to InvestingPro data, RadNet has demonstrated strong revenue growth of 12.76% over the last twelve months, positioning this acquisition as a strategic move in the company’s expansion plans. This acquisition integrates See-Mode’s AI applications for thyroid and breast ultrasound into RadNet’s subsidiary DeepHealth’s portfolio, aiming to improve diagnostic accuracy and workflow efficiency.
See-Mode’s technology has received FDA approval for its thyroid ultrasound solution and has been deployed across select RadNet imaging centers, demonstrating up to a 30% reduction in scan time. This efficiency increase is expected to enhance RadNet’s capacity to provide better access and potentially increase revenue across its network of over 900 ultrasound units. While currently trading at high EBIT and EBITDA multiples, InvestingPro analysts project the company will return to profitability this year, with several additional growth indicators available in the Pro Research Report.
Dr. Howard Berger, RadNet’s CEO, highlighted the significance of the acquisition, noting the prevalence of thyroid and breast cancers and the potential of AI to improve care in these areas. The integration of See-Mode’s technology is also anticipated to expand efficiencies to breast screenings and other clinical areas within RadNet’s two million annual ultrasound studies.
The collaboration with See-Mode is set to bolster DeepHealth’s leadership in population health solutions and will be offered to third parties as part of their commercialization efforts. Dr. Milad Mohammadzadeh, Co-Founder of See-Mode, expressed enthusiasm for the opportunity to build the future of ultrasound on the platform provided by the combined expertise and data access of RadNet and DeepHealth.
Kees Wesdorp, President and CEO of RadNet’s Digital Health division, commented on the potential for future AI-powered ultrasound solutions to contribute to DeepHealth’s growth. The acquisition is expected to address clinical and operational challenges in high-volume care settings.
This strategic move by RadNet underscores the company’s commitment to enhancing diagnostic imaging services through AI technology and positions it at the forefront of AI innovation in ultrasound. The details of this acquisition are based on a press release statement issued by RadNet. With an overall Financial Health score rated as "GOOD" by InvestingPro, and analyst price targets suggesting potential upside, RadNet appears well-positioned to execute its growth strategy, though current valuations suggest the stock may be trading above its Fair Value.
In other recent news, RadNet reported its Q1 2025 earnings, showcasing a revenue increase to $471.4 million, surpassing forecasts of $446.21 million. Despite exceeding revenue expectations, the company posted an earnings per share (EPS) of -$0.5, missing the anticipated -$0.108. RadNet’s revenue growth was primarily driven by a 31.1% year-over-year increase in its digital health segment. The company has also raised its 2025 revenue and adjusted EBITDA guidance, reflecting optimism about future performance. In a strategic move, RadNet recently acquired iCAD, a provider of advanced cancer detection and therapy solutions, to strengthen its AI capabilities in breast health solutions. Analyst firm Truist Securities maintained a Buy rating on RadNet, with a price target of $74, citing strong core growth and potential in the digital health sector. Meanwhile, Raymond James raised its price target for RadNet to $66, noting the company’s revenue and adjusted EBITDA performance exceeded expectations. Despite weather-related challenges earlier in the year, RadNet’s volumes rebounded, contributing to its positive financial outlook.
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