Advertisement
News
Advertisement

Equity firm offers $294M for Virtual Radiologic

Mon, 05/17/2010 - 7:10am
The Associated Press

Private equity firm Providence Equity Partners plans to buy Virtual Radiologic Corp. in a $294 million deal, the companies announced Monday.

Providence will acquire outstanding common shares of Virtual Radiologic, which is based in Eden Prairie, Minn., for $17.25 each in cash. That represents a nearly 42 percent premium over the 30-day average closing stock price of $12.18 as of May 14, the companies said in a statement.

Virtual Radiologic, which helps doctors interpret X-rays and provides other radiological services, will become a private company wholly owned by Providence after the deal's completion. Its board unanimously approved the agreement.

Company co-founder and chief medical officer, Dr. Eduard Michel, who owns 6 percent of its shares, has agreed to vote in favor of the deal. Another large shareholder, Generation Partners, also will vote in favor of it. Generation Partners owns 25.3 percent of company shares.

The deal is expected to close in the third quarter.

Virtual Radiologic shares jumped $3.93, or 30 percent, to $16.92 at the start of trading Monday.

Advertisement

Share this Story

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
Loading