A Medical Device Daily
NightHawk Radiology Holdings (Coeur D’Alene, Idaho), a major provider of solutions to radiology groups across the U.S., yesterday reported the acquisition of Midwest Physician Services , the business services division of St. Paul Radiology (St. Paul, Minnesota).
NightHawk said that the acquisition now enables it to provide the broadest suite of integrated radiology solutions available: professional services, clinical workflow technology and now business services.
In the deal, NightHawk also acquired Emergency Radiology Services, the off-hours emergency teleradiology division of St. Paul Radiology.
NightHawk paid $62.5 million in cash for the acquisition of both companies, along with a warrant entitling St. Paul Radiology to purchase 300,000 shares of NightHawk stock.
The purchase was financed as part of a larger debt facility the company recently completed.
The new business unit, Business Services , will provide radiology group customers with revenue cycle management, facilities and human resources management, transcription, and other services required to operate a radiology practice.
St. Paul Radiology also signed an agreement for business services with NightHawk which will include the use of NightHawk’s Talon clinical workflow technology.
St. Paul Radiology serves more than 40 hospitals and imaging centers, and NightHawk will receive a fee for the business services provided based on a percentage of St. Paul Radiology’s revenue.
Dr. Paul Berger, CEO and chairman of NightHawk, said, “The business services operations we are acquiring are state-of-the-art, highly efficient, and led by a great team.”
NightHawk said it will market its newly acquired services under the name NightHawk Business Services via cross-selling opportunities.
Tim Mayleben, executive VP/COO of NightHawk, said that the acquired business “presents minimal integration risks and will not involve any office or personnel relocations or management changes.”
The new business services division is estimated to contribute $8 million-$9 million in revenue for the remainder of 2007. In 2008, the transaction is estimated to add $16 million to $18 million in revenue and 6 cents-7 cents in NightHawk’s EPS.
In other dealmaking activity:
• Qiagen (Venlo, the Netherlands) and Digene (Gaithersburg, Maryland) reported expiration of the Hart-Scott-Rodino Antitrust waiting period at 11:59 pm, EDT, July 16, thus completing the preclosing antitrust review process, a key condition required for deal close.
The companies on June 3 disclosed the agreement for Qiagen to acquire Digene in a deal valued at $1.6 billion, 55% in cash and 45% in Qiagen stock (Medical Device Daily, June 5, 2007). The deal will carry Qiagen into sectors for testing of cervical cancer and sexually transmitted diseases.
The transaction is subject to the tender of a majority of Digene’s common stock before 11:59 p.m., EDT, July 20, unless extended, and approval by Qiagen shareholders.
The companies say the transaction is expected to close in the August/September period.
Qiagen is a provider of sample and assay technologies and products. Digene manufactures proprietary DNA and RNA tests, with a focus on women’s health.
• Quidel (San Diego), a provider of rapid point-of-care diagnostic tests, reported gaining exclusive, worldwide licenses to the antiviral resistance microarray-based influenza detection technology (AVR-Chip) and to the microarray-based influenza B detection technology (BChip), developed by scientists at the University of Colorado at Boulder (CU-Boulder) in collaboration with the U.S. Centers for Disease Control and Prevention (Atlanta). Terms of the licensing deal were not disclosed.
Caren Mason, president/CEO of Quidel, said, “Exclusive access to molecular-based technologies for influenza B diagnostics, and for detection of antiviral resistance, greatly complements our ongoing progress with our MChip technology for influenza A, which was licensed in December 2006 from CU-Boulder. These licenses also reinforce our commitment to market leadership in rapid point-of-care influenza diagnostics.”
The AVR-Chip is used to identify mutations that may confer resistance to antiviral reagents and facilitate proper influenza treatment decisions. The ability to identify antiviral susceptibility is important for global monitoring of influenza patterns, and for directing physicians toward better treatment decisions.
Quidel’s portfolio includes tests that aid in the diagnosis of several disease or condition states, with a focus on the physician office lab and acute care markets. Its Specialty Products Group develops research products in the fields of oncology and bone health with potential future point-of-care applications.