Apollo closes Alliance acquisition

Investment group Apollo Management completed its acquisition of imaging services company Alliance Imaging last month after Alliance shareholders voted on Dec. 17 in favor of the agreement (SCAN 8/6/97). Apollo now owns both Alliance and Pittsburgh-based imaging services firm SMT Health Services, which Apollo bought last year.

Apollo will continue to run both Alliance and SMT as separate companies for the foreseeable future, according to an Alliance spokesperson. One reason for keeping the firms separate is that Alliance enjoys a favorable tax bracket as a result of its recapitalization plan, which was completed as part of the acquisition. If Alliance were merged with SMT, the Securities and Exchange Commission has said the company would lose that favorable tax treatment, the spokesperson said.