FOR IMMEDIATE RELEASE
DRESNER PARTNERS ADVISED eRAD, INC.IN ITS SALE TO RADNET, INC.
CHICAGO – October 11, 2010 – Dresner Partners, a leading FINRA-registered, middle-market investment bank and IMAP member firm, announced today that it advised Image Medical Corporation, the parent of Greenville, South Carolina-based eRAD, Inc., in its sale to RadNet, Inc. (NasdaqGM: RDNT). eRAD, Inc. is a leading provider of Web-based image management and diagnostic workflow solutions. The company’s product offering is primarily categorized as a Radiology Information System/Picture Archive and Communications System (“RIS/PACS”), a software solution which is rapidly becoming a standard for virtually all diagnostic imaging providers.
eRAD President, Roy Miller, commented, “We are very excited about our new partnership with RadNet. Not only will eRAD software be at the foundation of RadNet’s technology information infrastructure, but eRAD’s tradition of technical innovation and our customer-centric business model will be maintained and nurtured by RadNet. Our customers, suppliers and employees will experience seamless continuity in product development and support, ongoing relationships and functional roles. Culturally and strategically, this business combination is truly an excellent fit, and we’re very pleased that the Dresner team, led by Steve Dresner, Gregg Pollack and Ejaz Elahi, was able to achieve such an outstanding outcome for our shareholders, customers and employees.”
Steven Dresner, president of Dresner Partners, added, “We feel privileged to have been able to advise eRAD in this highly synergistic transaction. eRAD’s state-of-the-art technology and highly talented management team made the company an attractive partner for a broad cross-section of imaging industry participants. RadNet recognized the long-term value of these proprietary assets.”
Dr. Howard Berger, M.D., president and chief executive officer at RadNet, Inc., added, “We currently license RIS/PACS and related solutions from third parties with significant ongoing costs. We projected this cost to increase materially with our growing procedural volumes in the coming years, as we execute on our acquisition and consolidation strategy. We have estimated that the acquisition of eRAD and the development of our own workflow solutions could save us more than $20 million over the next 10 years by eliminating the licensing, annual support and maintenance fees we would otherwise pay to others. As such, we believe these IT initiatives have the potential to expand our operating margins by eliminating internal RadNet costs and by benefiting from a business that has the potential for high-margin revenue and relatively low capital investment requirements. We welcome eRAD’s existing customer base as our new customers and we look forward to expanding the eRAD commercial software business over the years to come.”
The transaction closed on October 1, 2010.
About Dresner Partners
Dresner Partners is a FINRA-registered, middle-market investment bank headquartered in Chicago, Illinois. Founded in 1991, Dresner Partners provides financial advisory services to business owners and managers throughout the world, including institutional private placements of debt and equity, merger and acquisitions, financial restructuring and corporate turnaround, valuations and strategic consulting services. Dresner Partners is also a member of IMAP, a global organization of leading merger and acquisition advisory firms. Its affiliate company, Dresner Corporate Services, is a strategic communications firm specializing in public and investor relations. More information is available at www.dresnerpartners.com.
About eRAD, Inc.
eRAD, Inc.was founded in 1999 and offers a standards-based, web-centric image management solution using leading-edge technology. eRAD PACS web-accessible archive, and workflow solutions are installed in over two hundred sixty customer sites throughout the USA. eRAD’s PACS and RIS solutions integrate full-featured RIS/PACS and image management with workflow tools for hospitals, clinics, imaging centers and physician practices. For more information, visit www.erad.com
About RadNet, Inc.
RadNet, Inc. is a national market leader providing high-quality, cost-effective diagnostic imaging services through a network of 191 fully-owned and operated outpatient imaging centers. RadNet’s core markets include California, Maryland, Delaware, New Jersey and New York. Together with affiliated radiologists, and inclusive of full-time and per diem employees and technicians, RadNet has a total of approximately 4,000 employees. For more information, visit www.radnet.com.
For Media Inquiries:
Stephen Mullin, Director of Information & Marketing, Dresner Partners, (312) 780-7213, firstname.lastname@example.org