RadNet to Acquire DeepHealth, Inc., Expanding its Efforts in Artificial Intelligence

LOS ANGELES, March 11, 2020 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services today reported it has executed a definitive agreement to acquire DeepHealth, Inc. (“DeepHealth”), a leading radiology artificial intelligence (“AI”) and machine learning company initially focused on solutions for the medical interpretation of mammography exams.

Founded in 2015 and based in Cambridge, Massachusetts, DeepHealth is developing solutions in machine learning and AI to assist radiologists and other clinicians in interpreting images and improving patient care. DeepHealth’s development to date has focused on screening mammography, specifically 3D breast imaging, where the large volume of cases and the difficult nature of their interpretation place significant demand on radiologists.

RadNet will purchase DeepHealth for an initial payment of approximately 1.0 million shares of RadNet Common Stock to be made at closing, which is planned for April 1, 2020. Additional payments to DeepHealth equityholders aggregating up to approximately 1.5 million shares will be contingent upon the achievement of several significant milestones, including establishing approval from the Federal Drug Administration (FDA) for certain mammography and prostate MRI algorithms and for demonstrating certain features, functionality and radiologist productivity.

Upon closing of the transaction, Dr. Gregory Sorensen, Co-Founder and President of DeepHealth, will join RadNet to lead all of RadNet’s AI efforts, including those projects currently being developed by RadNet’s previously acquired Nulogix team. Dr. Sorensen’s responsibilities, in addition to continuing the management of DeepHealth’s staff and initiatives, will include directing RadNet’s AI strategy, acquisitions, partnerships, licensing and product development. A graduate of Caltech, Brigham Young University, Harvard and MIT, Dr. Sorensen is a board-certified neuroradiologist, was a full professor at Harvard Medical School and co-directed a 300-person laboratory inside Massachusetts General Hospital. Immediately prior to founding DeepHealth, Dr. Sorensen was the President & CEO of Siemens Healthcare North America. DeepHealth’s Co-founder and Chief Technology Officer, Bill Lotter, a Harvard University PhD graduate, will help deploy and further develop DeepHealth’s AI technology within RadNet.