Imaging center operator RadNet Inc. has reached a “definitive” agreement to acquire artificial intelligence vendor iCAD for $103 million, the two announced Tuesday afternoon.
Pending approval, the Nashua, New Hampshire-based business will become part of RadNet’s DeepHealth AI division. Founded in 1984 under the name Howtek, iCAD offers a suite of solutions to help radiologists and other physicians detect breast cancer on medical images.
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The acquisition would give Los Angeles-headquartered RadNet an installed base of more than 1,500 healthcare provider locations, facilitating 8 million mammograms across 50 countries.
RadNet has been on an AI buying binge since 2020, acquiring firms including DeepHealth, Kheiron Medical Technologies, Quantib and Aidence.
“ICAD’s ProFound Breast Health Suite and RadNet’s DeepHealth AI-powered breast screening solutions, together, have the power to materially expand and improve patient diagnosis and outcomes on a global basis through further enabling accuracy and early detection,” RadNet President and CEO Howard Berger, MD, said in a statement April 15. “This business combination is expected to accelerate our global leadership and commitment to AI-powered breast cancer screening, and positions us to further advance population health,” he added later.
RadNet expects to close the transaction by the third quarter of 2025, subject to approval by iCAD stockholders and other conditions. Both companies’ boards of directors already unanimously approved the acquisition. Once the deal is completed, RadNet will add a “seasoned” commercial and engineering team to its DeepHealth division, helping to accelerate its “growth and leadership in cancer screening and artificial intelligence.” ICAD will be integrated into its portfolio of solutions, bringing a board a team of nearly 70. Under terms of the agreement, iCAD stockholders will receive 0.0677 shares of RadNet common stock for each share of iCAD they hold at the time of closing.
Dana Brown, CEO of the AI vendor since 2023, said she believes RadNet’s scale, access to data and clinical leadership will help ensure that future and current projects will be brought to market. Areas of focus include risk evaluation, breast density assessment and classifying arterial calcification, all aimed at “improving radiologist and patient workflow and clinical outcomes.”
“As we join forces with RadNet to create a broad offering of AI-driven solutions, we have the opportunity to redefine how breast cancer and other diseases are detected and treated,” Brown said in the announcement. “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.”
RadNet bills itself as the “leading” national provider of freestanding, fixed-site diagnostic imaging services in the U.S. It currently operates a network of 398 outpatient imaging centers concentrated in eight states—Arizona, California, Delaware, Florida, Maryland, New Jersey, New York and Texas. The company has sought to diversify, offering radiology information technology, AI solutions and teleradiology professional services.
ICAD, meanwhile is a “global leader on a mission to create a world where cancer can’t hide by providing clinically proven AI-powered solutions.” It offers the “industry leading” ProFound Breast Health Suite that provides help detecting cancer and evaluating risk of the disease. Thousands of providers use the product, which has read over 40 million mammograms worldwide in the past five years, nearly 30% of which were tomosynthesis.
