May 15, 2015 — vRad (Virtual Radiologic) announced that it has entered into a definitive agreement to be acquired by Mednax Inc. (NYSE: MD), 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. Projected completion for the transaction is the second quarter of 2015.
“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 cross-selling 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.