Insight Imaging, based in Lake Forest, Calif., and Center for Diagnostic Imaging (CDI), based in Minneapolis, two of the largest imaging providers in the U.S., are planning to merge. Financial terms of the merger were not disclosed.
Together, Insight and CDI said they will have a footprint of 116 fixed centers in 25 states and 90 mobile MRI and PET/CT units. The transaction is expected to close in July.
To facilitate this combination, Black Diamond Capital Management, through investment funds it manages that collectively own a majority interest in Insight, will lead an investment in Insight that will buy out the owners of CDI, including Onex, at the completion of the merger. Onex has owned a controlling interest in CDI for the past seven years. Onex also maintains a controlling interest in Carestream Health.
The combined company will be headquartered at CDI’s current offices in Minneapolis, though the management team intends to maintain a presence at Insight’s California office “for the foreseeable future.”
Tom Tomlinson, current CEO of CDI, will become the combined company’s new CEO. Tomlinson has previously held positions as chief financial officer, chief operating officer, president and CEO at CDI during his 10-year tenure with the organization.
Kip Hallman, CEO of Insight, will stay with the organization through the finalization of the merger in July.