Radiology and radiation therapy services provider Alliance HealthCare Services has agreed to be acquired by majority stockholder Tahoe Investment Group in a transaction that will take the company private.
Under the definitive merger agreement, the Fuzhou, China-based Tahoe Group will purchase all outstanding common stock of Alliance for approximately $75 million. The $13.25 per-share price represents a 67% premium over the company's closing trade price on December 9, which was the last trade prior to the group's initial proposal, Alliance said. The deal does not include common stock already beneficially owned by the Tahoe Group or owned by Alliance as treasury stock. The Tahoe Group initially purchased a 51% interest in Alliance in March 2016.
Upon closing of the merger, Alliance will become an indirect wholly owned subsidiary of Tahoe and is expected to remain in Southern California. In addition, Alliance said it expects that its executive management team will remain in place and that all of its divisions in the U.S. will continue unaffected.
Alliance's stockholders must still approve the deal, including a nonwaivable condition requiring approval by the holders of a majority of the outstanding shares of Alliance common stock that are not beneficially owned by members of the Tahoe Group or certain company senior executive officers. The deal is also subject to certain customary closing conditions. If completed, the merger will result in Alliance becoming a privately held company and its common stock would no longer be listed on the Nasdaq Stock Market, the firm said.
