U.K. and Ireland teleradiology services provider Medica has signed a conditional agreement to buy imaging contract research organization (CRO) RadMD for up to $21.7 million in cash.
The deal, which would provide Medica with access to the $1 billion imaging CRO market and help the company to expand into other geographies, is conditional on the completion of a private placement of shares to raise the funds needed for the acquisition.
Medica would pay an initial $16.3 million (11.7 million pounds) in cash up front for the Conshohocken, PA-based firm, as well as up to an additional $5.4 million (3.9 million pounds) based on 2021 financial performance. The company said it anticipates the deal would be accretive to earnings in its first year.
