U.S. Diagnostic Holds Talks About Purchase of Alliance
May 01, 2011
Vastopolis -- U.S. Diagnostic Labs Inc. said it is discussing a possible acquisition of Alliance Imaging Inc. for around $70 million. U.S. Diagnostic, a physician practice-management company, hasn't reached a definitive agreement but disclosed the merger talks Friday because of the recent run-up in Alliance's stock, according to P. Andria Holmes, U.S. Diagnostic's chief financial officer. ``We've been in an acquisition mode to buy and operate imaging centers,'' he added. U.S. Diagnostic, which owns 50 diagnostic centers in 12 states, earlier this month signed a definitive agreement to buy Medical Imaging Centers of America Inc. for about $34.6 million. In the possible transaction with Alliance, terms under consideration include an exchange of U.S. Diagnostic stock for Alliance stock valued at between $6 and $6.50 per Alliance share. However, both companies noted that any agreement would be subject to numerous conditions. Alliance, based in Orange, Calif., provides diagnostic imaging services to hospitals and other health-care providers. Alliance stock, which had shot up more than 30% in recent days, fell 56.25 cents, or 9%, to $5.438 in Nasdaq Stock Market trading Friday.
