Virtual Radiologic Corp., a national radiology services provider based in Eden Prairie, Minn., has announced it will pay $170 million in cash to acquire NightHawk Radiology Services, Scottsdale, Ariz.
The deal calls for Virtual Radiologic to pay $6.50 per share to acquire all of NighHawk’s outstanding common stock. The purchase price represents a premium of 100% above NightHawk’s Sept. 24, 2010, closing price. Once completed, the agreement calls for Virtual Radiologic President and CEO Rob Kill to serve as lead executive for the combined companies. NightHawk President and CEO Dave Engert will remain with the company as a board adviser. The remainder of the leadership team will be drawn from management teams at both companies, according to a news release.
Both Virtual Radiologic and NightHawk provide radiology services and workflow-solutions technology to providers nationwide. The acquisition is expected to expand Virtual Radiologic’s market share and workforce capacity. Following the close of the deal, Virtual Radiologic is expected to have 325 radiologists serving roughly 2,700 U.S. healthcare facilities.
The transaction is subject to customary regulatory review and approval by NightHawk shareholders. It is expected to close during the first quarter of 2011.