Merge Buying Etrials For About $18.3 Million.

NEW YORK (AP) — Medical imaging and information software company Merge Healthcare Inc. said Monday it is buying Etrials Worldwide Inc. for about $18.3 million in a cash-and-stock deal.

Morrisville, N.C.-based Etrials, which makes clinical trial software, accepted the offer as superior to a $14.5 million cash-and-stock bid by Bio-Imaging Technologies Inc.

Milwaukee-based Merge said it will pay 80 cents and 0.3448 shares of Merge common stock for each of Etrials common shares, amounting to about $1.70 per share. That marks a 32 percent premium to Etrial's closing stock price of $1.29 Friday.

Newtown, Pa.-based Bio-Imaging's last offer included 0.124 shares of newly issued Bio-Imaging common stock, 0.076 shares of newly issued Bio-Imaging preferred stock, and 62 cents per share. That amounted to $1.35 per share.

Bio-Imaging said Etrials is now obligated to pay a termination fee of $500,000 and reimburse Bio-Imaging for reasonable out of pocket expenses up to $250,000 on or before June 2. The fees are based on the companies' previous definitive agreement on a deal.

Merge said it will structure the buyout as a tender offer and expects the deal to close in the third quarter. It expects the deal to boost its imaging and data portfiolio for clinical trials.