Akumin (AKU) has agreed to acquire Alliance HealthCare Services at an enterprise valuation of $820 million. The transaction is expected to close in Q3.
Akumin provides freestanding outpatient radiology services. Alliance provides radiology and oncology solutions to hospitals, health systems, as well as physician groups. The move is expected to create comprehensive radiology and oncology solutions providers in the U.S. with pro forma revenues of over $730 million.
Akumin President and CEO Riadh Zine said, “The acquisition of Alliance is transformative in a changing healthcare ecosystem that continues to shift toward outpatient, price-transparent, value-based care.” (See Akumin stock chart on TipRanks)
Zine added, “There is no other organization that has the complement of attributes we will offer together as outpatient healthcare services experts, in particular with Alliance’s longstanding hospital and health system relationships and Akumin’s freestanding operational expertise.”
Significantly, the combined entity will offer its radiology and oncology solutions to over 1,000 hospitals and health care customers, 154 independent outpatient radiology centers, and 34 radiation therapy centers across the U.S.
On June 9, Clarus analyst Noel Atkinson reiterated a Buy rating on the stock with a $4.88 price target (44.7% upside potential). Atkinson believes the market is undervaluing Akumin, and investors can expect more from the stock.
The other analyst covering the stock, Canaccord Genuity’s Tania Gonsalves also has a Buy on Akumin alongside a price target of $4.5 (33.5% upside potential).
The two ratings add up to a Moderate Buy consensus rating. The average Akumin analyst price target of $4.69 implies 39.3% upside potential. Shares have gained 21.4% over the past year.
Related News:
High Tide Acquires Daily High Club
Synopsis Announces $175M Share Repurchase Program, Collaboration with Samsung
Vertex Pharmaceuticals Announces $1.5B Stock Repurchase Program
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
