RadNet to acquire AI cancer detection firm iCAD in stock deal

LOS ANGELES and NASHUA, N.H. - RadNet, Inc. (NASDAQ: RDNT), a prominent provider of diagnostic imaging services, has announced a definitive merger agreement to acquire iCAD, Inc. (NASDAQ: ICAD), known for its AI-powered breast health solutions. The all-stock transaction values iCAD at approximately $103 million. According to InvestingPro data, iCAD maintains impressive gross profit margins of nearly 87% and holds more cash than debt on its balance sheet.

Under the agreement, iCAD stockholders will receive 0.0677 shares of RadNet common stock for each iCAD share. This exchange ratio represents a roughly 98% premium based on iCAD’s closing stock price on Monday, April 14, 2025. The merger is expected to close in the second or third quarter of 2025, pending iCAD stockholder approval and other customary closing conditions. Recent InvestingPro analysis indicates iCAD’s stock has shown significant momentum, with a 9.6% return over the past week.

RadNet’s acquisition of iCAD is poised to enhance its DeepHealth subsidiary by adding over 1,500 healthcare provider locations in more than 50 countries. The integration is anticipated to bolster RadNet’s growth in the AI-powered cancer screening sector, particularly in breast cancer detection, by leveraging iCAD’s established commercial and engineering teams. iCAD’s strong financial health is evidenced by its current ratio of 3.5, indicating robust liquidity to support operations. Get deeper insights into iCAD’s financial metrics and more exclusive analysis with a InvestingPro subscription, which includes access to detailed Pro Research Reports covering 1,400+ top stocks.

Dr. Howard Berger, President and CEO of RadNet, emphasized the potential impact on patient diagnosis and outcomes, citing iCAD’s ProFound Breast Health Suite and RadNet’s DeepHealth solutions as instrumental in advancing accuracy and early detection of breast cancer globally. The acquisition target’s revenue growth of 13.2% in the last twelve months suggests strong market momentum for its innovative solutions.

Dana Brown, President and CEO of iCAD, expressed optimism about the merger, highlighting the opportunity to redefine disease detection and treatment. Brown anticipates that the combined entity will accelerate the delivery of cutting-edge tools and facilitate innovation.

RadNet will discuss the transaction details in a conference call and webcast tomorrow at 10:30 a.m. ET. The transaction has received unanimous approval from both companies’ boards of directors.

This news is based on a press release statement from RadNet, Inc.

In other recent news, iCAD Inc. has reported its fourth-quarter 2024 earnings, revealing a revenue of $5.41 million, which surpassed expectations of $4.5 million. The company’s earnings per share (EPS) also beat forecasts, coming in at -$0.03 against the predicted -$0.06. This performance was bolstered by a 24% year-over-year increase in product sales, highlighting the company’s successful shift toward a Software-as-a-Service (SaaS) model. BTIG has maintained its Buy rating for iCAD, with a price target of $3.00, noting the company’s revenue exceeded both its preannouncement and consensus estimates.

Additionally, iCAD has appointed Mark Koeniguer as the new Chief Commercial Officer to spearhead revenue growth initiatives. Koeniguer brings extensive experience from his previous roles, including CEO of ScreenPoint Medical. The company has also seen a rise in total annual recurring revenue (T-ARR) to $9.8 million, marking an 11% year-over-year growth. In terms of strategic advancements, iCAD’s ProFound Detection v4.0, which received FDA clearance, is now in deployment and reportedly shows improved accuracy in practice compared to clinical studies.

Furthermore, iCAD is preparing for FDA approval of its Breast Arterial Calcification (BAC) and plans to submit ProFound Risk for approval next year. The transition to a recurring revenue model is expected to continue, with BTIG projecting sales growth to remain flat in 2025 but to increase by 10% in 2026. These developments underscore iCAD’s ongoing efforts to enhance its financial predictability and expand its market reach.

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