RadNet, one of the largest radiology providers in the United States, has entered into a definitive agreement to acquire DeepHealth, an imaging technology company focused on using AI to improve breast cancer screening.
The deal is expected to be finalized on April 1, when RadNet will make an initial payment of 1 million shares of stock. Additional payments will occur if specific milestones—FDA approval for key algorithms, for example—are met.
Gregory Sorenson, MD, co-founder and president of DeepHealth, will lead RadNet’s AI operations once the acquisition is complete. Sorenson, a board-certified neuroradiologist, will also continue managing DeepHealth staff moving forward.
“We are more certain today than ever before that artificial intelligence will transform the diagnostic imaging and radiology industry,” Howard Berger, MD, chairman and CEO of RadNet, said in a prepared statement. “Machine learning, big data applications and automation algorithms will allow us to deliver our services more cost effectively, efficiently and accurately. We have been tracking DeepHealth’s progress and evaluating its algorithms for some time. Not only do we believe Greg and his talented team of developers and computer scientists are leading the field in AI solutions for mammography, but DeepHealth’s core competencies and human resources are the perfect combination to direct other important RadNet AI initiatives.”
“My team and I are thrilled to join the RadNet family,” Sorenson said in the same statement. “RadNet is unique in the imaging business and positions us to be successful in our mission to create industry-leading AI products and services that have significant impact on patients’ lives.”