MEDNAX, a national medical group comprised of the nation’s leading providers of neonatal, anesthesia, maternal-fetal and pediatric physician subspecialty services announced that it will acquire teleradiology firm vRad for $500 million. vRad’s current management team will join MEDNAX as part of the transaction. The company’s headquarters and 24/7 operations and client support center will continue to be based in Eden Prairie, Minnesota.
The outsourced radiology physician services and telemedicine company currently generates annual revenue of roughly $185 million through its network of more than 350 U.S.-board certified and eligible radiologists, more than 75 percent of whom are subspecialty trained. The company reads and interprets more than five million diagnostic imaging studies annually, which are included in vRad’s proprietary picture archiving and communication system (PACS).
The company provides radiology coverage to over 2,100 healthcare facilities across all 50 states and internationally. vRad’s proprietary technology and workflow platform, extensive database, and analytic capabilities enable real-time distribution of studies to appropriately trained, licensed and credentialed physicians in order to improve clinical outcomes, increase speed of diagnosis and reduce the cost of care.
The transaction is expected to be completed during the second quarter of 2015. This is a cash transaction, and it is expected to be accretive to earnings, including interest and non-cash amortization expense.