Radiology Partners has finalized its blockbuster $885 million acquisition of Mednax’s imaging business line, the two industry giants announced Wednesday.
After completing the Federal Trade Commission’s antitrust review process and other closing conditions, Rad Partners said it crossed the finish line on Dec. 15. With the deal complete, the El Segundo, California-based practice now employs some 2,400 radiologists in all 50 states, reading roughly 35 million exams annually.
“This is a significant chapter in the history of our practice, and we are thrilled to welcome hundreds of Mednax radiologists and support team members to the RP family,” Chairman and CEO Rich Whitney said in a statement. “Together, we will continue to elevate radiologists’ role in our healthcare system as we advance our mission to transform radiology.”
Rad Partners plans to fund the transaction through $650 million in new secured notes, along with cash-on-hand of $130 million, and another $150 million in equity from investors. Minus closing costs and other adjustments, Sunrise, Florida-based Mednax will net $865 million from the sale, with plans to pay down debt with the proceeds. The company plans to change its name to Pediatrix and focus on maternal and childcare.
In a September interview, Whitney said he did not anticipate any practice closures or layoffs following the deal. He also touted the addition of teleradiology giant vRad, allowing Rad Partners to begin offering remote overnight reads to smaller practices, which it had not done previously.
RP said it’s adding new markets with the acquisition while also expanding coverage in existing hubs.
“Since RP’s intent was announced in September, we’ve thought a great deal about how a combined practice will enhance our capabilities for clinical care,” Ricardo Cury, MD, chief medical officer of Mednax Radiology Solutions, said in a statement. “With the deal’s completion, it’s now time to roll up our sleeves and get to work on creating new pathways for innovation, leveraging our combined strengths and, ultimately, improving patient care.”