Nautic scans radiology group

Providence, Rhode Island-based private equity firm Nautic Partners has acquired medical imaging management services group American Imaging Management, investing $37m in the company.

Nautic Partners, formerly the private equity arm of Fleet Financial Group, has acquired International Radiology Group and its subsidiary American Imaging Management (AIM). The terms of the transaction were not disclosed, but Nautic invested $37 million (€31 million) in the company.

Nautic: big returns in image management?

AIM provides services to insurers and healthcare providers to “manage the utilization, cost and quality of diagnostic imaging services such as MRI, CT and PET,” according to a statement released by Nautic. Northbrook, Illinois-based AIM, which was founded in 1989, claims to be the largest and oldest company of its kind. AIM clients include CIGNA, Anthem Midwest and Blue Cross Blue Shield plans in Michigan and Texas.

“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,” Scott Hilinkski, a Nautic managing director, said in a statement.

Senior debt financing for the deal was provided by Merrill Lynch Capital.

Nautic has made 13 investments in healthcare companies, a sector that is one of the firm’s main focuses along with business services, manufacturing and communications. They have also invested in management services companies Axia Health Management, health plan administrator CompBenefits and medical device maker Gaymar Holding.

Nautic makes $25 million to $75 million investments in its portfolio companies. The firm’s last fund, which is the independent successor to the Fleet Equity Partners funds, was its fifthclosing in 2001 on $1.1 billion. The firm was founded in 1986 as part of Fleet and currently has more than 25 active portfolio companies and $1.8 billion under management.