National radiology services and telemedicine provider vRad has announced it has entered into a definitive agreement to be acquired by MEDNAX, a provider of maternal-fetal, newborn, pediatric subspecialty and anesthesia physician services.
The cash transaction is valued at $500 million and expected to be completed during the second quarter of 2015.
“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,” said Roger J. Medel, MD, Chief Executive Officer of MEDNAX, in a statement. “We believe the opportunities for organic growth at vRad and for cross-selling between the company’s and MEDNAX’s customer bases are compelling.”
vRad currently has more than 350 board-certified and eligible radiologists in its network and provides radiology coverage to more than 2,100 healthcare facilities. Annual revenues are approximately $185 million.
vRad’s current management team with join MEDNAX as part of the deal, while the company’s headquarters and client support center will remain in Eden Prairie, Minn.
This is a cash transaction, and it is expected to be accretive to earnings, including interest and non-cash amortization expense, according to the companies.
Evan joined TriMed in 2011, writing primarily for Health Imaging. Prior to diving into medical journalism, Evan worked for the Nine Network of Public Media in St. Louis. He also has worked in public relations and education. Evan studied journalism at the University of Missouri, with an emphasis on broadcast media.