Vital Images Sold to Toshiba for $273M

Under the terms of the agreement, Toshiba Medical Systems Corporation will pay $18.75 for each of Vital Images' outstanding shares.

Minnetonka-based Vital Images, Inc., will be acquired by Toshiba Medical Systems Corporation (TMSC) in a $273 million cash transaction, the two companies announced on Wednesday.

Under the terms of the agreement, TMSC-a unit of Japanese electronics giant Toshiba Corporation-will pay $18.75 for each of Vital Images' outstanding shares. According to a joint press release from the companies, the terms of the deal were unanimously approved by both businesses' boards of directors. The deal is expected to close by the third quarter.

Vital Images' stock closed at $14.18 per share on Wednesday and was trading up nearly 31.5 percent to $18.65 per share during Thursday morning trading.

“This is a great day for Vital's shareholders, employees, customers, and partners,” Vital Images CEO Michael Carrel said in a statement. “TMSC has been our largest customer for a decade, as well as a strategic development partner. This transaction means we can now accelerate our global presence with the strength and backing of TMSC.”

Vital Images provides visualization and analysis software to physicians and health care specialists. TMSC, which makes diagnostic imaging systems, such as X-ray and ultrasound machines, distributes Vital Images' software globally.

A spokeswoman for Vital Images on Thursday declined to comment on possible changes to the company's Minnesota work force. The company currently employs 245 worldwide and 175 in Minnesota. The Star Tribune reports that the companies have no plans to move or cut workers, and Toshiba said it plans to maintain Vital Images' leadership.

Vital Images' 2010 revenues totaled $59.7 million, up from $58.2 million in 2009. It is among Minnesota's 90 largest public companies.