Apollo to retool imaging portfolio
Investment firm Apollo Management is restructuring its holdings in the imaging services segment by arranging to have its Alliance Imaging unit acquire SMT Health Services, another mobile imaging provider that Apollo owns. Alliance of Anaheim, CA,
Investment firm Apollo Management is restructuring its holdings in the imaging services segment by arranging to have its Alliance Imaging unit acquire SMT Health Services, another mobile imaging provider that Apollo owns. Alliance of Anaheim, CA, announced on April 15 that it will acquire Pittsburgh-based SMT in a stock-for-stock merger in which Alliance will assume responsibility for $68.4 million in SMT debt.
New York City-based Apollo has been intent on consolidating the mobile imaging segment, and bought SMT in 1997 and Alliance in 1998 (SCAN 7/9/97 and 1/14/98). Apollo originally operated the two firms as separate entities in order to maintain Alliances favorable tax status, but apparently now sees advantages to running them both under Alliances umbrella. Following the acquisition, Alliance will operate about 285 MRI scanners across the U.S. Alliance executives were not available for comment on the deal.