Akumin To Acquire Alliance HealthCare Services With An Enterprise Value Of $820M

Akumin Inc AKU has agreed to acquire Alliance HealthCare Services Inc, a provider of radiology and oncology solutions to hospitals, health systems, and physician groups.
The transaction has an enterprise value of $820 million and is expected to close in the third quarter of 2021.
The combined company is expected to have pro forma revenue over $730 million and pro forma adjusted EBITDA over $210 million, including expected cost synergies, based on the last twelve months ended March 31, 2021.
Upon closing the transaction, the combined company will be operating in 46 states, with more than 1,000 hospital and health system customers, 154 independent outpatient radiology centers, and 34 radiation therapy centers.
The combined company expects to have over 4,000 team members serving more than two million radiology and oncology patient visits annually.
Stonepeak, an alternative investment firm, has provided a debt and equity financing commitment to Akumin in connection with the acquisition.
Stonepeak will subscribe for a minimum of $200 million and a maximum of $689.6 million unsecured notes of Akumin.
Akumin will issue to Stonepeak 3.5 million common shares representing approximately 4.9% of the currently issued and outstanding, having a value of around $10.4 million.
Price Action: AKU shares are up 10.6% at $3.35 in the premarket session