Establishes Platform for Growth in Teleradiology and Telemedicine
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--May 12, 2015--
MEDNAX, Inc. (NYSE: MD), the national medical group specializing in
neonatal, anesthesia, maternal-fetal, pediatric cardiology and other
pediatric physician services, today announced the signing of a
definitive agreement to acquire Virtual Radiologic Corporation (vRad),
the leading radiology physician services and telemedicine company, for
$500 million.
“We believe vRad is an excellent platform for growth in teleradiology
and the broader telemedicine market,” said Roger J. Medel, M.D., Chief
Executive Officer of MEDNAX. “Radiology is a large, fragmented industry
with total revenue of roughly $18 billion, and it is evolving rapidly to
include teleradiology as an economic and clinical necessity for
customers. We believe the opportunities for organic growth at vRad and
for cross-selling between the company’s and MEDNAX’s customer bases are
compelling. This acquisition also further broadens the scope of services
we can provide to our hospital partners. Finally, vRad’s extensive
investments in information technology and data analytics align well with
our own commitment to improving both the quality and cost effectiveness
of care.”
vRad 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.
vRad’s current management team will remain with the company as part of
MEDNAX.
“We are excited at the opportunity to join a company founded and built
by physicians, and we share MEDNAX’s commitment to providing the highest
quality care,” said Jim Burke, Chief Executive Officer of vRad. “Our
executive management, medical leadership, physicians and team members
all look forward to joining MEDNAX. vRad is proud to be recognized as a
leader in radiology, an innovator in healthcare informatics, and a
pioneer in telemedicine. Together with MEDNAX, we can offer our patients
and hospital partners a broad array of services, now including access to
an expanding national network of critical subspecialty expertise and
support. This transaction is a testament to the strength of the vRad
clinical and business model, and underscores the value of the vRad
organization today, and for the future.”
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.
Additional information and conference call
MEDNAX, Inc., has provided additional information about the transaction,
which may be accessed from the Company’s Website, www.mednax.com.
The Company will host an investor conference call to discuss the
transaction at 9 a.m., E.D.T. today. Those wishing to participate can do
so by dialing 800.288.8975, access Code 360181, or through the
conference call Webcast, which may also be accessed through the
Company’s Website. A telephone replay of the conference call will be
available from 11 a.m., E.D.T. today through midnight E.D.T. May 16,
2015 by dialing 800.475.6701, access Code 360181. The replay will also
be available at www.mednax.com.
ABOUT vRAD
vRad (Virtual Radiologic) is a leading outsourced radiology physician
services and telemedicine company with over 350 U.S. board-certified and
eligible physicians, 75% of whom are subspecialty trained. The company
interprets over 5 million patient studies annually—and processes over
1.2 billion images on the world’s biggest and most advanced
teleradiology PACS— for its 2,100+ client hospital, health system and
radiology group facilities. A winner of Frost & Sullivan’s Visionary
Innovation Award for Medical Imaging Analytics (North America) and a
leader in imaging analytics, vRad provides access to the only radiology
patient care benchmarking platform (vRad RPCSM Index) with 31
million+ normalized imaging studies, growing at 400,000 per month.
vRad’s clinical expertise and evidence-based insight help clients make
better decisions for the health of their patients and their imaging
services. For more information about the company, including vRad’s 2014
Frost & Sullivan Best Practices Award, please visit www.vrad.com.
ABOUT MEDNAX
MEDNAX, Inc. is a national medical group comprised of the nation's
leading providers of neonatal, anesthesia, maternal-fetal and pediatric
physician subspecialty services. Physicians and advanced practitioners
practicing as part of MEDNAX are reshaping the delivery of care within
their specialties and subspecialties, using evidence-based tools,
continuous quality initiatives and clinical research to enhance patient
outcomes and provide high-quality, cost-effective care. Pediatrix
Medical Group, a division of MEDNAX, was founded in 1979 and includes
neonatal physicians who provide services at more than 370 neonatal
intensive care units, and collaborate with affiliated maternal-fetal
medicine, pediatric cardiology, pediatric critical care and other
physician subspecialists to provide a clinical care continuum. Pediatrix
is also the nation's largest provider of newborn hearing screens.
American Anesthesiology, a division of MEDNAX, was established in 2007
and includes more than 2,400 anesthesiologists and advanced
practitioners who provide anesthesia care to patients in connection with
surgical and other procedures as well as pain management. MEDNAX,
through its affiliated professional corporations, employs more than
2,675 physicians in 34 states and Puerto Rico. In addition to its
national physician network, MEDNAX provides services to medical
providers in over 40 states through two complementary businesses,
consisting of a revenue cycle management company and a consulting
services company. Additional information is available at www.mednax.com.
Certain statements and information in this press release may be
deemed to contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements may
include, but are not limited to, statements relating to our objectives,
plans and strategies, and all statements, other than statements of
historical facts, that address activities, events or developments that
we intend, expect, project, believe or anticipate will or may occur in
the future. These statements are often characterized by terminology such
as “believe”, “hope”, “may”, “anticipate”, “should”, “intend”, “plan”,
“will”, “expect”, “estimate”, “project”, “positioned”, “strategy” and
similar expressions, and are based on assumptions and assessments made
by MEDNAX’s management in light of their experience and their perception
of historical trends, current conditions, expected future developments
and other factors they believe to be appropriate. Any forward-looking
statements in this press release are made as of the date hereof, and
MEDNAX undertakes no duty to update or revise any such statements,
whether as a result of new information, future events or otherwise.
Forward-looking statements are not guarantees of future performance and
are subject to risks and uncertainties. Important factors that could
cause actual results, developments, and business decisions to differ
materially from forward-looking statements are described in MEDNAX’s
most recent Annual Report on Form 10-K and its Quarterly Reports on Form
10-Q, including the sections entitled “Risk Factors”, as well as
MEDNAX’s current reports on Form 8-K, filed with the Securities and
Exchange Commission.
Source: MEDNAX, Inc.
MEDNAX, Inc.
Charles Lynch, 954-384-0175, x-5692
Vice
President, Strategy and Investor Relations
charles_lynch@mednax.com