by Brendon Nafziger
, DOTmed News Associate Editor | July 13, 2010
An affiliate of private equity firm Providence Equity Partners closed the deal to buy teleradiology and workflow technology company Virtual Radiologic for around $294 million, the companies announced Monday.
Providence, which says its handles about $22 billion in equity capital, originally announced in May it had agreed to pay $17.25 in cash for each share of Virtual Radiologic's common stock. This price is a penny premium on its Friday closing price of $17.24 but a 42 percent premium over the 30-day average closing stock price of $12.18 as of May 14, near when the purchase was announced.
The transaction's valued at around $294 million, the companies said.
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Virtual Radiologic's board of directors approved the deal in May, but the stockholders agreed to the acquisition Monday morning, the Eden Prairie, Minn.-based company said.
"We are pleased with the outcome of today's stockholder vote," Virtual Radiologic's president and CEO Rob Kill said in a statement. "The vote results underscore the value we are delivering to shareholders through this transaction. Looking ahead, we expect to continue building on our leadership position in the development of radiologist workflow technology and in providing the highest quality patient care."
Virtual Radiologic was delisted from Nasdaq at close of business on Monday.
Providence, R.I.-based Providence has significant investments in many media and telecommunications businesses, including Univision, Hulu and VoiceStream Wireless.