Toshiba makes bid to acquire 3D firm Vital Images

By Erik L. Ridley, AuntMinnie.com staff writer

April 27, 2011 -- Extending its presence in advanced visualization, Toshiba Medical Systems has inked a definitive agreement to buy longtime partner Vital Images for approximately $273 million in cash.

The companies have partnered for a decade and in more than 50 countries. In a statement, Toshiba CEO Satoshi Tsunakawa said the acquisition will strengthen the company's Imaging Solutions business by integrating its technologies to meet the global demand for advanced visualization and imaging informatics provided to healthcare professionals and through healthcare IT providers.

The acquisition is the second in the advanced visualization space that Toshiba has made in the past three years. In 2009, Toshiba purchased Barco's Advanced Visualization business.

Under the deal, a subsidiary of Toshiba Medical Systems will pay $18.75 per share through a cash tender offer followed by a merger. The price represents a 39% premium over the volume-weighted average of Vital Images' share price for the past 30 calendar days.

The agreement has been unanimously approved by both firms' boards of directors.

Among other things, the closing of the tender offer is conditioned on the tender of at least a majority of the outstanding shares of Vital Images' common stock on a fully diluted basis, required regulatory approvals, and other customary closing conditions. The companies expect the transaction will close in the second or third quarter of 2011.


Copyright © 2011 AuntMinnie.com
 

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