US-based medical group Mednax has signed an agreement to acquire radiology physician services and telemedicine firm, Virtual Radiologic (vRad), for $500m.

vRad provides radiology services to 2,100 client hospital, health system and radiology group facilities across the US and internationally.

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Mednax CEO Dr Roger Medel said: "We believe vRad is an excellent platform for growth in teleradiology and the broader telemedicine market.

"Through its teleradiology picture archiving and communication system (PACS), the company is said to process 1.2 billion images per annum for healthcare facilities."

"Radiology is a large, fragmented industry with total revenue of roughly $18bn, and it is evolving rapidly to include teleradiology as an economic and clinical necessity for customers."

Through its teleradiology picture archiving and communication system (PACS), the company is said to process 1.2 billion images per annum for healthcare facilities.

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With 350 US board-certified and eligible radiologists, vRad reports annual revenue of $185m per annum. vRad’s current management team will continue in the company and will be part of Mednax.

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Virtual Radiologic CEO Jim Burke said: "vRad is proud to be recognised as a leader in radiology, an innovator in healthcare informatics and a pioneer in telemedicine.

"Together with Mednax, we can offer our patients and hospital partners a broad array of services, now including access to an expanding national network of critical subspeciality expertise and support."

The deal is expected to be completed in the second quarter of 2015. Mednax provides neonatal, anaesthesia, maternal-foetal and paediatric physician subspeciality services in the US and Puerto Rico.