Radiology Partners’ El Segundo headquarters.

Radiology Partners’ El Segundo headquarters. Photo by Kevin Reece

El Segundo-based radiology services company Radiology Partners Inc. has agreed to acquire Mednax Radiology Solutions, a division of Sunrise, Fla.-based Mednax Services Inc., for about $885 million.

The deal, announced by Radiology Partners on Sept. 10, will create one of the nation’s largest third-party radiology service networks.

Radiology Partners claims to be the largest physician-led and physician-owned radiology practice in the United States with roughly 1,600 radiologists providing services to more than 1,300 hospitals, clinics and imaging centers across 26 states.

Mednax Radiology Solutions has at least 825 radiologists providing services to more than 2,000 hospitals, clinics and imaging centers in all 50 states.

About 300 of these radiologists are onsite, primarily in Connecticut, Florida, Nevada, Tennessee and Texas. The remaining 500 or so provide their image interpreting services remotely to client facilities across the country. Together, these radiologists interpret nearly 12 million images annually.

The deal has been unanimously approved by the Radiology Partners and Mednax’s boards but still awaits regulatory approvals.When finalized, the deal will create a network of more than 2,400 radiologists in all 50 states.

According to the announcement, the acquisition “will enable greater capabilities for large-scale clinical programs driving … cost reduction across the health care system.”

It will also increase sub-specialty offerings for patients and medical facility clients.

“The Mednax radiology practices are among the best in the country, and we are excited to welcome so many outstanding radiologists and physician leaders to our practice,” Rich Whitney, chief executive of Radiology Partners, said in the announcement.

“We believe the benefits of increased scale, paired with local practice autonomy and physician leadership, will allow us to continue to advance patient care,” he added.

Goldman Sachs & Co. is serving as financial adviser and Kirkland & Ellis is serving as legal adviser to Radiology Partners. Barclays is serving as financial advisor and DLA Piper is serving as legal counsel to Mednax.

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