Toshiba Medical Systems and Vital Images have signed a definitive agreement for Toshiba to purchase Vital Images’ stock for a total of $273 million, putting the cap on a decade-long partnership between the two companies. *

Under the agreement, which is expected to close by the second or third quarter of 2011, a Toshiba subsidiary will acquire all outstanding shares of Vital Images’ stock at $18.75 per share. The merger has been unanimously approved by the boards of directors of both companies, Tustin, Calif.-based Toshiba said.

Minneapolis-based Vital Images, which develops advanced visualization software and other health IT products, has relied heavily on a partnership with Toshiba over the last ten years.

"After a decade-long successful partnership spanning more than 50 countries, [Toshiba] is taking the partnership to the next level. We have enormous respect for Vital Images' products, pipeline and people, and look forward to working with their highly skilled team to enhance clinical value for patients throughout the world,” said Satoshi Tsunakawa, CEO of Toshiba Medical Systems.

Michael Carrel, CEO of Vital Images, expressed enthusiasm over the deal, saying “This transaction means we can now accelerate our global presence with the strength and backing of [Toshiba].”

The $18.75 share price Toshiba agreed to pay for Vital Images represents a 39 percent premium over the volume-weighted average of the company’s 30-day stock, Toshiba reported.

The bid follows Toshiba's 2009 purchase of Barco's advanced visualization business, which resulted in the formation of Toshiba Medical Visualization Systems Europe.

* Correction—The breaking news issued on April 27 suggested that Toshiba’s bid to purchase Vital Images was a complete acquisition. Health Imaging News apologizes for any confusion this may have caused.