Virtual Radiologic acquires Diagna Radiology for nearly $8.5M

Virtual Radiologic to expand its neuroradiology services with Diagna purchase. Source: Diagna Radiology

Virtual Radiologic, a provider of teleradiology services, has acquired Diagna Radiology of Post Falls, Idaho, for $6 million in up-front cash and an additional $2.2 million in potential earn-out payments to be made over two years.

The transaction closed April 14.

Diagna offers subspecialty expertise in neuroradiology, musculoskeletal and nuclear medicine. Diagna contracts with seven American Board of Radiology-certified radiologists who provide services for 44 customers in 17 states, according to Minneapolis-based Virtual Radiologic.

On a GAAP basis, Virtual reported that the acquisition is expected to be neutral to earnings per share in 2008 and between $30,000 and $50,000 accretive per share in 2009