Investor Groups Improve Offer for InSight Health
InSight Health Services Corp. said it has received a sweetened buyout offer from two investor groups.
The investors--Carlyle Group and Halifax Group.--already own about a third of Newport Beach-based InSight’s voting stock.
They have made a verbal offer of $10 a share, or about $28.6 million, to buy the remaining shares in the diagnostic-imaging company, InSight said late Monday.
The bid also requires approval from General Electric Co., which owns 36% of the voting stock. GE spokesman Bruce Bunch wouldn’t give the company’s position on the bid.
The offer represents a 51% premium to InSight’s Monday closing price of $6.63. InSight’s stock rose 22.6% Tuesday, or $1.50 a share, to $8.13. The company had 2.86 million shares outstanding as of May 1.
InSight spokeswoman Lynne Rayburn declined to give the amount or date of the previous offer. Glenn Youngkin, a partner in Washington-based buyout firm Carlyle, wouldn’t say why it’s interested in acquiring InSight. Carlyle’s chairman is Frank Carlucci, a former U.S. secretary of defense.
InSight appointed a committee to evaluate the offer and hired Shattuck Hammond Partners, a PricewaterhouseCoopers Securities LLC subsidiary, to advise it. InSight wouldn’t say when a recommendation would be made to the board.
The company, which provides diagnostic imaging and related management services to hospitals and health-care companies, also posted sharply lower profits for the third fiscal quarter.
Net income dropped 72% to $525,000, or 6 cents a share, from $1.9 million, or 20 cents a share, a year ago. Revenue for the quarter ended March 31 rose 44% to $40.8 million from $28.4 million.
