* Agrees to be taken pvt by Providence Equity Partners
* Deal at $17.25/shr represents 33 pct premium
* Virtual shares up 30 pct
May 17 Radiology services provider Virtual
Radiologic Corp VRAD.O said it agreed to be taken private by
Providence Equity Partners for about $294 million in cash.
The offer price of $17.25 per share represents a premium of
33 percent over Virtual's Friday close.
Virtual's Chief Medical Officer Eduard Michel, who owns 6
of the company's shares and is a co-founder of the company, and
Generation Partners, which owns 25.3 percent of the shares,
have agreed to vote in favor of the transaction.
Goldman, Sachs & Co was serving as the financial advisor
to Virtual Radiologic on the deal, which is expected to be
completed in the third quarter of 2010, the healthcare company
and the private-equity firm said in a joint statement.
Virtual is the second U.S. healthcare company that agreed
to go private this month.
Earlier this month, pharmaceutical services provider
InVentiv Health Inc VTIV.O agreed to be bought by
private-equity firm Thomas H. Lee Partners [THL.UL] for about
$1.1 billion. [ID:nSGE6450NS]
Shares of Virtual were up 30 percent to $16.93 in morning
trade on Nasdaq. They reached a high of $16.95 earlier in the
session, just 30 cents shy of the offer price.
(Reporting by Esha Dey in Bangalore; Editing by Aradhana