Allion Healthcare (ALLI) said it reached a definitive merger agreement to purchase 100% of the outstanding stock of Biomed America, Inc. for $117.80 million.
The $117.80 million purchase price consists of $48.00 million in cash and a total of 9.35 million shares of Allion common and Series A preferred stock valued at $51.40 million based on the closing share price on March 12, 2008 of $5.50, plus the assumption of up to $18.60 million of debt.
Further, Allion might make an earn-out payment in 2009 if Biomed achieves certain financial performance benchmarks during the first 12-month period post closing.
The acquisition is anticipated to accelerate revenue growth and margin expansion.
The company expects the transaction to close within sixty days, subject to the satisfaction of customary closing conditions.
Allion has received a commitment for $55 million in senior secured credit facilities from CIT Capital Securities LLC to fund the deal.
by RTTNews Staff Writer
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