Nautic Partners, LLC, a private equity firm with more than $1.8 billion of capital under management, today announced that it has acquired, in partnership with company management, International Radiology Group and its primary subsidiary, American Imaging Management, Inc. The Company now operates under a newly created acquisition corporation named AIM Holding Company LLC (AIM). Nautic Partners invested $37 million of equity capital in the transaction. Senior debt financing was provided by Merrill Lynch Capital. Other terms of the transaction were not disclosed.
AIM is the leading provider of services that help insurers and healthcare providers manage the utilization, cost, and quality of diagnostic imaging services such as MRI, CT, and PET. Major customers include CIGNA, Blue Cross Blue Shield plans in Michigan and Texas, and Anthem Midwest.
Scott Hilinski, a Managing Director of Nautic Partners, said, “Imaging costs represent a large and rapidly growing portion of total medical expenditures for many health plans, which means there is a clear need for management of outpatient imaging costs. AIM is the leader in this specialized market with an attractive value proposition and a significant new business pipeline. In Dave Harrington, the Company’s CEO, we have a strong leader who has led a turnaround at AIM, won new business, and positioned the Company as the premier low cost, high quality provider. We are very pleased to be working with Dave and his team and look forward to realizing AIM’s full growth potential.”
Since its founding, Nautic Partners has completed 13 investments in the healthcare sector. These transactions, which have taken the form of leveraged buyouts, management buyouts, and leveraged recapitalizations, include such companies as AXIA Health Management, a provider of population health management services, Gaymar Holding Company, a manufacturer of pressure ulcer and temperature management products, CompBenefits Corporation, a dental and vision plan administrator, and PHNS, an information technology and business process outsourcer for hospitals.
AIM is the nation’s foremost provider of customized radiology management solutions. The Company, started in 1989, was the first to focus exclusively on outpatient diagnostic imaging services. Since its inception, AIM has developed proven management programs to assist health plans in promoting high quality, cost-effective radiology services. AIM’s programs currently manage over 6 million covered lives on behalf of health insurers across the country.