Apollo Medical and Network Medical Management announce merger
Apollo Medical Holdings and Network Medical Management, a healthcare Management Services Organizations, MSOs, in the United States, announced that they have signed a definitive merger agreement pursuant to which the companies will combine in a stock-for-stock merger transaction. On a pro forma basis, the combined organization, which will continue as Apollo Medical Holdings, would have had more than $330 million in revenues for the twelve months ended on December 31, 2015 and would provide medical management for over 700,000 patients through a network of over 3000 healthcare professionals and over 400 employees. The combination of ApolloMed and NMM brings together two leading, complementary healthcare organizations to form one of the nation's largest integrated population health management companies, which will be well positioned for the ongoing transition of U.S. healthcare to value-based reimbursements. Under the terms of the merger agreement, NMM shareholders will own 82% and ApolloMed shareholders will own 18% of issued and outstanding shares at closing, and are expected to be approximately 80% and 20% respectively on a fully diluted basis. Additionally, NMM has agreed to relinquish its redemption rights relating to preferred stock it owns in ApolloMed. The transaction was approved unanimously by the Board of Directors of both companies.