UPDATE 1-Virtual Radiologic to go private for $294 mln in cash

* Agrees to be taken pvt by Providence Equity Partners

* Deal at $17.25/shr represents 33 pct premium

* Virtual shares up 30 pct

May 17 (BestGrowthStock) – Radiology services provider Virtual
Radiologic Corp (VRAD.O: ) said it agreed to be taken private by
Providence Equity Partners for about $294 million in cash.

The offer price of $17.25 per share represents a premium of
33 percent over Virtual’s Friday close.

Virtual’s Chief Medical Officer Eduard Michel, who owns 6
of the company’s shares and is a co-founder of the company, and
Generation Partners, which owns 25.3 percent of the shares,
have agreed to vote in favor of the transaction.

Goldman, Sachs & Co was serving as the financial advisor
to Virtual Radiologic on the deal, which is expected to be
completed in the third quarter of 2010, the healthcare company
and the private-equity firm said in a joint statement.

Virtual is the second U.S. healthcare company that agreed
to go private this month.

Earlier this month, pharmaceutical services provider
InVentiv Health Inc (VTIV.O: ) agreed to be bought by
private-equity firm Thomas H. Lee Partners [THL.UL] for about
$1.1 billion. [ID:nSGE6450NS]

Shares of Virtual were up 30 percent to $16.93 in morning
trade on Nasdaq. They reached a high of $16.95 earlier in the
session, just 30 cents shy of the offer price.

Stock Market Report

(Reporting by Esha Dey in Bangalore; Editing by Aradhana

UPDATE 1-Virtual Radiologic to go private for $294 mln in cash