News | May 20, 2010

Virtual Radiologic Sells for $294 Million

May 20, 2010 - Virtual Radiologic Corp. (vRad) announced on May 17 the private equity firm, Providence Equity Partners, will acquire all of the outstanding common stock of vRad for $17.25 per share in cash. The transaction is valued at approximately $294 million.

The offer price represents a premium of 41.7 percent over the 30-day average closing stock price of $12.18 as of May 14, 2010, and a premium of 54.9 percent over the three month average closing stock price of $11.13.

vRad provides teleradiology solutions, including a picture archive and communications system (PACS). The company's board of directors unanimously approved the agreement and recommends that shareholders vote in favor of the transaction. vRad's co-founder and chief medical officer, Eduard Michel, M.D., who owns 6.0 percent of the company's outstanding common shares, and Generation Partners, which owns 25.3 percent of the shares, agreed to vote in favor of the transaction.

The deal is expected to be completed in the third quarter of 2010, subject to customary closing conditions, and regulatory and shareholder approvals. Upon completion, vRad will become a private company, wholly owned by Providence.

Goldman, Sachs & Co. is serving as financial advisor and Oppenheimer Wolff & Donnelly LLP is serving as legal counsel to Virtual Radiologic. Weil, Gotshal & Manges LLP is serving as legal counsel to Providence Equity Partners.

For more information: www.virtualrad.com

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