Providence Equity Partners completed its takeover of Virtual Radiologic Corp. (NSDQ:VRAD).
The transaction was valued at approximately $294 million. The deal, approved by a VRAD stockholder vote, will see a Providence Equity affiliate acquire the Eden Praire, Minn.-based radiology outsourcing firm.
The companies announced the deal May 17, when Virtual Radiologic’s closing price was $16.90, but the offer represented a 41.7 percent premium over the 30-day average closing stock price of $12.18 as of May 14 and a 54.9 percent premium over the three month average closing price of $11.13.
Virtual Radiologic went public in late 2007 in a $68 million IPO, but its stock price soon fell 43 percent. When the deal to take the company private was announced in May, CEO Rob Kill said that VRAD didn’t feel it was “being valued properly.”
Virtual Radiologic provides teleradiology services and software to remotely connect hospitals and clinics around the country with radiologists who analyze and interpret MRI and CT scans. The company has been growing rapidly, posting $121 million in revenue in 2009 compared with $86 million in 2007. Providence Equity has invested in more than 100 companies since 1989, according to its website, including Hulu and Kerasotes Theatres, but few firms in the health space. The company manages more than $22 billion in equity capital.