On June 8, 2012, Insight Imaging, Inc. 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, 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, at the completion of the merger. The net proceeds paid to Onex and the other shareholders of CDI totaled $91 million; however, the other terms of the transaction were not disclosed.
FocalPoint Securities advised the Board of Directors of Insight with respect to the financial aspects of the transaction.
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.”
Other professionals involved in the transaction included Ashby-Geddes P.A. as legal advisor the Board of Directors and Jones Walker LLP as legal counsel to Insight.
Insight Imaging, headquartered in Lake Forest, CA, is a provider of fixed-site and mobile diagnostic imaging services.
Black Diamond is an alternative asset management firm with over $11 billion in assets under management across four complementary investment platforms.
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements, financial restructurings and distressed transactions.