EDEN PRAIRIE, MN – Virtual Radiologic (vRad), a national radiology practice and developer of radiologist workflow technology, will acquire competitor NightHawk Radiology in a $170 million deal.
Scottsdale, Ariz.-based NightHawk Radiology (NASDAQ: NHWK), provides radiology solutions to radiology groups across the country. vRad will acquire all of the outstanding common stock of NightHawk Radiology Holdings, Inc. for $6.50 per share in cash, which is double NighHawk's closing stock price of $3.25 per share.
The combination of vRad and NightHawk will result in enhanced services to radiology groups and hospitals across the country, accelerating vRad's stated commitment to optimize radiology's critical role in the delivery of patient care, vRad executives said. The combined entity will have 325 radiologists serving nearly 2,700 healthcare facilities across all 50 states and reading approximately 6 million studies annually. More than 75 percent of the affiliated radiologists will be fellowship-trained subspecialists.
"Local radiology practices and hospitals are under intense pressure to deliver the highest quality care in the most efficient manner possible," said vRad President and CEO Rob Kill. "The need for expanded access, improved quality, and reduced costs is clear. Both vRad and NightHawk have been delivering these benefits in partnership with local radiologists for many years."
"We are pleased to deliver significant, immediate value to our stockholders through this transaction," said NightHawk President and CEO David Engert. "The combination of our collective assets will enable us to better meet our clients' rapidly expanding needs and will enhance our ability to partner with local radiologists to address the needs of local hospitals, physicians and the patients they serve."
Upon the completion of the transaction, Kill will continue to serve as president and CEO of the combined organization. Engert will remain as a board adviser following the close of the transaction. The remainder of the leadership team will be drawn from the management teams of both companies.
Company executives expect the transaction will be completed in the first quarter of 2011, subject to customary closing conditions, including the approval of NightHawk's stockholders.
