Insight Imaging and Center for Diagnostic Imaging (CDI) have announced plans to merge to form a medical imaging and related services organizations with a combined footprint of 116 fixed centers in 25 states and 90 mobile MRI and PET/CT units. The combined company will be headquartered at CDI’s current offices in Minneapolis. Black Diamond Capital Management will lead an investment in Insight that will buy out the owners of CDI, including Onex Corporation at the completion of the merger.
Insight Imaging, Inc. (“Insight”) and Center for Diagnostic Imaging, Inc. (“CDI”) announced plans to combine to form one of the nation’s largest medical imaging and related services organizations, with a combined footprint of 116 fixed centers in 25 states and 90 mobile MRI and PET/CT units. The transaction closed on July 25, 2012. The combined company will be headquartered at CDI’s current offices in Minneapolis, though the management team intends to maintain a presence at Insight’s California office for the foreseeable future.
To facilitate this combination, Black Diamond Capital Management, L.L.C. (“Black Diamond”), through investment funds it manages that collectively own a majority interest in Insight, will lead an investment in Insight that will buy out the owners of CDI, including Onex Corporation (“Onex”), (TSX:OCX), at the completion of the merger. The net proceeds paid to Onex and the other shareholders of CDI totaled $91.0 million; however, the other terms of the transaction were not disclosed.
Stephen Deckoff, founder and Managing Principal of Black Diamond said “We are proud to be a part of this transaction. We believe this combination creates the strongest company in the industry and are looking forward to capitalizing on our combined strength to further our growth and enhance the services we provide to our patients and customers.” Kip Hallman, former CEO of Insight, added, “I am proud to have accomplished what we set out to do four years ago: to match Insight’s exceptional Patients First care and outstanding service with equally strong financial performance. It has been a privilege to build and lead the great team responsible for making this happen. I couldn’t be more excited about Insight joining forces with CDI to form one of the largest and, in my view, clearly the best radiology and imaging services company in the nation.”
Alex Stevenson, Managing Director of FocalPoint said “FocalPoint is committed to the healthcare space and we are pleased to have been able to work with Insight, its stakeholders and the other professionals in the completion of this successful transaction.”
FocalPoint Securities LLC advised the Board of Directors of Insight with respect to the financial aspects of the transaction. Other professionals involved included Ashby-Geddes P.A. as legal advisor the Board of Directors and Jones Walker LLP as legal counsel to Insight.
About Insight Imaging
Insight Imaging, headquartered in Lake Forest, California, is a provider of fixed-site and mobile diagnostic imaging services. Insight Imaging serves a diverse portfolio of customers, including healthcare providers, such as hospitals and physicians, and payors, such as managed care organizations, Medicare, Medicaid and insurance companies, in over 30 states, including the following targeted regional markets: California, Arizona, Texas, New England, the Carolinas, Florida and the Mid-Atlantic states.
About Black Diamond Capital Management
Black Diamond is a leading alternative asset management firm with over $11 billion in assets under management across four complementary investment platforms: control distressed/private equity funds, a hedge fund, mezzanine funds and CLO and other structured vehicles. Founded in 1995, Black Diamond has multiple offices including Greenwich, CT, Lake Forest, IL, and London, England.
About FocalPoint Securities, LLC
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm serves middle market clients throughout the U.S with offices in Los Angeles and Chicago.