Robbins Umeda LLP Announces an Investigation of the Acquisition of Virtual Radiologic Corporation by Private Equity Firm Providence Equity Partners
SAN DIEGO--(BUSINESS WIRE)--Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the Board of Directors of Virtual Radiologic Corporation ("VRC") (NASDAQ: VRAD) in connection with their actions in causing VRC to enter into a definitive agreement to be acquired by Providence Equity Partners ("Providence"). If the transaction is completed, Providence will acquire all of the outstanding common stock of VRC for $17.25 per share in cash. The companies expect the transaction to close in the third quarter of 2010. Upon completion, VRC will become a private company, wholly owned by Providence.
VRC's co-founder and Chief Medical Officer, Dr. Eduard Michel, who owns 6.0% of the Company's outstanding common shares, and Generation Partners, which owns 25.3% of the Company's common shares, have executed voting agreements under which they have agreed to vote in favor of the transaction.
Robbins Umeda LLP's investigation concerns whether the Board of Directors of VRC undertook a fair process to obtain fair consideration for all shareholders of VRC.