NightHawk repurchases 3 million shares from founder

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NightHawk Radiology has signed an agreement to repurchase 3 million shares of common stock owned by Paul Berger, the company’s founder and former chairman.

Under the terms of the agreement; the Coeur d'Alene, Idaho-based teleradiology services provider will pay $4.63 a share, reflecting a 6 percent discount off the closing price on Aug. 12. According to NightHawk, the repurchase “is in the best interests of its remaining shareholders, given the company’s current cash position and ability to generate free cash flow."

The share repurchase will also result, NightHawk said, in a reduction in the weighted average number of shares outstanding, and is expected to result in one cent per share increase in adjusted earnings in the third quarter of 2009.