Virtual Radiologic (NASDAQ: VRAD), which had an IPO last year, is a New Age medical company. That is, it operates a sophisticated network that allows for remote interpretation of CT scans, ultrasounds, and MRIs. In other words, a radiologist can work from his or her own home – and still make big bucks.

This week, Virtual Radiologic announced its Q1 results. Revenues increased 29% to $23.3 million and EBITDA was up 60% to $4 million.

And to continue its growth, Virtual Radiologic recently acquired Diagna Radiology, LLC, for $6 million. The firm has 44 customers in 17 states. What's more, Diagna has a strong platform for analysis on final reads, which could be a nice up-sell opportunity for Virtual Radiologic customers.

The deal should be neutral to adjusted earnings per share and add $3 million to $3.5 million in revenues.

Looking at the long haul, things do look favorable for Virtual Radiologic – especially in light of the talent shortage and the growing demand for healthcare services.

Despite this, investors were expecting more for Q1 and as a result, the stock sold off at about 9% to $14 per share.

Tom Taulli is the author of various books, including The Complete M&A Handbook (www.mergerbook.com) and is also a principal in Averiware, which provides an ERP system to small and midsize businesses.