vRad (Virtual Radiologic), the nation’s leading
radiology physician services and telemedicine company, today announced that it has
entered into a definitive agreement to be acquired by MEDNAX, Inc. (NYSE: MD), the
nation’s largest provider of maternal-fetal, newborn, pediatric subspecialty and
anesthesia physician services.
The cash transaction is valued at $500 million and is
expected to be accretive to MEDNAX’s earnings. The transaction is expected to be
completed during the second quarter of 2015.
“We are excited at the opportunity to join a company founded and built by physicians,
and we share MEDNAX’s commitment to providing the highest quality care,” said Jim
Burke, Chief Executive Officer of vRad. “Our executive management, medical
leadership, physicians and team members all look forward to joining MEDNAX. vRad
is proud to be recognized as a leader in radiology, an innovator in healthcare
informatics, and a pioneer in telemedicine. Together with MEDNAX, we can offer our
patients and hospital partners a broad array of services, now including access to an
expanding national network of critical subspecialty expertise and support. This
transaction is a testament to the strength of the vRad clinical and business model, and
underscores the value of the vRad organization today, and for the future.”
“We believe vRad is an excellent platform for growth in teleradiology and the broader
telemedicine market,” said Roger J. Medel, M.D., Chief Executive Officer of MEDNAX.
“Radiology is a large, fragmented industry with total revenue of roughly $18 billion,
and it is evolving rapidly to include teleradiology as an economic and clinical necessity
for customers. We believe the opportunities for organic growth at vRad and for crossselling
between the company’s and MEDNAX’s customer bases are compelling. This
acquisition also further broadens the scope of services we can provide to our hospital
partners. Finally, vRad’s extensive investments in information technology and data
analytics align well with our own commitment to improving both the quality and cost
effectiveness of care.”
vRad’s current management team will join MEDNAX as part of the transaction. The
company’s headquarters and 24/7 operations and client support center will continue to
be based in Eden Prairie, Minnesota.
vRad’s financial advisor in connection with the transaction is Credit Suisse Securities
(USA) LLC and its legal counsel is Kirkland & Ellis LLP.
For additional information, including Frequently Asked Questions (FAQs) on the
transaction, please visit www.vrad.com/MEDNAX.
Source: vRad
Image Credit: vRad
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Radiology, vRad, MEDNAX
vRad (Virtual Radiologic), the nation’s leading radiology physician services and telemedicine company, today announced that it has entered into a defini...