Imaging center chain U.S. Diagnostic is moving into new markets as it continues to divest its imaging center holdings. The West Palm Beach, FL-based firm has signed a letter of understanding to merge with radiology benefit management firm International Radiology Group, USDL said.
Under terms of the letter, the firm would acquire 100% of the fully-diluted membership units of IRG for total consideration consisting of 49% of the issued shares of the combined entity, $5 million in cash, $5 million in a five-year subordinated, unsecured debenture and performance based warrants. Upon consummation of the merger, representatives of IRG will assume a majority of the board seats of the combined entity. The transaction is expected to close in the second quarter of 2001.
For West Palm Beach, FL-based USDL, the deal allows the firm to invest the proceeds from the sale of its imaging centers in a business with current earnings and high growth potential. International Radiology Group and its subsidiary, American Imaging Management have approximately three million covered lives. IRG also operates a radiology image reading center in Dallas, TX.
By AuntMinnie.com staff writersJanuary 17, 2001
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