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- Alliance Healthcare Services
Alliance Healthcare Services Acquisition & Valuation
Alliance Healthcare Services was acquired by Akumin for $820M in June 2021, a 1.7x multiple on $483M of revenue.
Alliance Healthcare Services acquisition price
$820M
Acquired by Akumin · Jun 2021
Alliance Healthcare Services revenue at acquisition
$483M
Last twelve months · Jun 2021
Alliance Healthcare Services revenue multiple at acquisition
1.7x
EV/Revenue · Jun 2021
Alliance Healthcare Services EBITDA multiple at acquisition
7.0x
EV/EBITDA · Jun 2021
About Alliance Healthcare Services
Alliance Healthcare Services, historically Alliance Imaging, is a United States provider of outsourced diagnostic imaging services for hospitals and other healthcare providers. Its imaging operations use mobile equipment and permanent sites to deliver magnetic resonance imaging, positron emission tomography and combined PET/CT examinations. The service package includes imaging systems, trained technologists, equipment maintenance and the management of daily imaging operations. Hospitals can contract for shared equipment on scheduled days or for full-time imaging capacity. The business also operates fixed sites in partnership with hospitals and health systems, including facilities that bill patients or insurers directly. Most historical imaging revenue came from healthcare provider contracts priced per scan or for a specified service period. Its network served more than one thousand clients across forty-four states at the end of 2005.
Founded
1983
HQ
Status
Acquired
Customer focus
B2B
Revenue model
Services
Revenue
$483M (Jun 2021)
Valuation
$820M (acquired Jun 2021)
Sectors
Alliance Healthcare Services Acquisition
Alliance Healthcare Services was acquired by Akumin for $820M on 25 June 2021.
The acquisition price implies a 1.7x revenue and 7.0x EBITDA multiple on $483M of revenue.
Alliance HealthCare Services is a California-based provider of radiology and oncology solutions serving more than 1,000 hospitals, health systems, and physicians' practices across 45 states. The company had been owned by Chinese investment firm Tahoe Investment Group since 2016-2017. Akumin, a US-based outpatient radiology services provider, announced the acquisition on June 25, 2021, for an enterprise valuation of $820 million USD. The deal closed on September 1, 2021, following Hart-Scott-Rodino antitrust clearance. The combination created a comprehensive healthcare solutions platform with integrated radiology and oncology capabilities, positioning the merged entity as a major provider of outsourced hospital imaging and cancer treatment services. The combined company was expected to generate approximately $730 million in pro forma revenue and $213 million in adjusted EBITDA for the twelve months ended March 31, 2021, with anticipated synergies of $24 million. Tahoe Investment Group received equity consideration and board representation in the combined company, while Akumin funded the transaction through cash, new debt, and equity issuance, with infrastructure investor Stonepeak providing $340 million in unsecured notes and $10 million in common shares.
| Acquirer | Date | Type | Price | EV/Revenue | EV/EBITDA |
|---|---|---|---|---|---|
| 25 Jun 2021 | Strategic M&A | $820M | 1.7x | 7.0x |
Alliance Healthcare Services Funding History
Alliance Healthcare Services has 1 recorded secondary share sale and no primary funding rounds.
Alliance Healthcare Services funding rounds
| Date | Stage | Investors | Raised | Deal Summary |
|---|---|---|---|---|
| Mar 2007 | Secondary | Oaktree Capital Management (lead); MTS Health Investors | $153M | OCM Principal Opportunities Fund IV, managed by Oaktree Capital Management, and MTS Health Investors agreed on 16 March 2007 to buy the controlling stake in Alliance Imaging held by Kohlberg Kravis Roberts. On 16 April 2007 Viewer Holdings, an entity managed by an affiliate of KKR, completed the sale of 24,501,505 shares of Alliance Imaging common stock for approximately $153.1 million to entities managed by Oaktree and MTS, which then beneficially owned approximately 49.7% of the outstanding shares. KKR had controlled the company since a 1999 recapitalization and before the sale owned about 52% of the stock; its management agreement with the company was terminated as part of the transaction. Oaktree and MTS entered into a governance and standstill agreement with the company that gave them board representation, and Oaktree's fund became the largest shareholder. Alliance Imaging, based in Orange County, California, provides outsourced mobile and fixed-site diagnostic imaging services, mainly MRI and PET/CT, to hospitals and physician groups across the United States, and later added radiation therapy through Alliance Oncology. The company was renamed Alliance HealthCare Services in 2009. Oaktree and MTS agreed to sell their stake to Fujian Thai Hot Investment in September 2015. |
Who has invested in Alliance Healthcare Services?
2 investors have backed Alliance Healthcare Services across its funding rounds, including Oaktree Capital Management and MTS Health Investors.
Lead investors include Oaktree Capital Management.
Alliance Healthcare Services Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
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Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
Sign up to see data on 350K+ funding rounds and disclosed revenue and EBITDA valuation multiples, from seed, through growth stage, to pre-IPO.
Start Free TrialAcquisitions by Alliance Healthcare Services
Alliance Healthcare Services has acquired 6 companies to date.
Last acquisition by Alliance Healthcare Services was on January 11th 2018. Alliance Healthcare Services acquired e+CancerCare for undisclosed valuation.
Latest Acquisitions by Alliance Healthcare Services
| Description | e+CancerCare is an operator of 24 outpatient cancer centers across ten U.S. states. Founded in 2002, it integrates radiation oncology, medical oncology, diagnostic testing, and ancillary services following protocols from leading research institutions like MD Anderson. | Vertical Health Solutions is a Minneapolis-headquartered developer of SaaS platforms for MRI quality assurance in diagnostic imaging. The company delivers web-accessible tools that analyze DICOM phantom images, compute signal-to-noise ratios, track ACR accreditation reports, and generate trends, charts, and benchmarking data for hospitals and imaging centers throughout the United States. | SMT Health Services was an American provider of mobile diagnostic imaging services based in Pittsburgh, Pennsylvania. It owned and operated a fleet of mobile magnetic resonance imaging units that it moved between hospitals and other health care providers under shared-service contracts, so that smaller institutions could offer MRI without buying their own equipment. In 1997 it ran 19 mobile MRI units serving customers in Pennsylvania, West Virginia, North Carolina, South Carolina, Virginia, Ohio and Kentucky. Revenue came from per-scan and contract fees paid by the hospitals it served. The company was listed on the Nasdaq National Market under the symbol SHED until an affiliate of Apollo Management acquired it in 1997. Apollo later merged its parent, Three Rivers Holding, into Alliance Imaging, another Apollo-controlled imaging company. | Medical Diagnostics is a Wilmington, Massachusetts-based diagnostic imaging services company that operated as Medical Diagnostics, Inc. It provided mobile and fixed-site magnetic resonance imaging and nuclear medicine services to hospitals and other healthcare providers. Revenue came from service fees for imaging capacity, equipment and technologists. Before 1998 it was a subsidiary of U.S. Diagnostic, Inc. When Alliance Imaging acquired it in May 1998, the business operated 10 MRI systems, 8 of them mobile and 2 fixed-site, and 3 nuclear medicine SPECT camera systems. It was integrated into Alliance Imaging's national network of shared-service imaging operations. | |
| HQ Country | |||||
| HQ City | Nashville, TN | Minneapolis, MN | Pittsburgh | Wilmington | |
| Deal Date | 11 Jan 2018 | 5 May 2014 | 14 Apr 1999 | 19 May 1998 | |
| Valuation | undisclosed | undisclosed | undisclosed | $38M | |
| EV/Revenue | |||||
| EV/EBITDA | |||||
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Alliance Healthcare Services Competitors
Alliance Healthcare Services competitors include listed companies like Gushengtang Holdings, Dr. Sulaiman Al Habib Medical Services, WELL Health and Terveystalo, and private ones like Radiant Life Care Private Ltd and Hospitales MAC.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | $64M | $11M | $816M | 12.8x | ||
| Publicly listed | $488M | $93M | $790M | - | ||
| Private | $279M | - | $773M | 2.8x | ||
| Publicly listed | $410M | $110M | $876M | - | ||
| Publicly listed | $1000M | $110M | $760M | 1.2x | ||
| Publicly listed | $1.4B | $259M | $886M | 1.2x |
Alliance Healthcare Services Public Comps
Alliance Healthcare Services is no longer listed, but its public comps include Gushengtang Holdings, Dr. Sulaiman Al Habib Medical Services, WELL Health, Terveystalo, Diagnósticos da América, Clinica Baviera, Al Hammadi Holding, Kovai Medical Center, Thomson Medical and HealthCare Global Enterprises.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $488M | $93M | 1.7x | - | 8.9x | - | |||
| $410M | $110M | 2.6x | - | 9.8x | - | |||
| $1000M | $110M | 1.4x | 1.2x | 12.6x | 10.1x | |||
| $1.4B | $259M | 1.1x | 1.2x | 6.2x | 6.6x | |||
| $2B | $324M | 0.9x | 1.1x | 5.9x | 5.1x | |||
| $338M | $95M | 2.6x | 2.4x | 9.2x | 8.4x | |||
| $329M | $98M | 3.0x | 2.8x | 10.1x | 10.8x | |||
| $168M | $47M | 4.1x | - | 14.7x | - | |||
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Common questions about Alliance Healthcare Services
| When was Alliance Healthcare Services founded? | Alliance Healthcare Services was founded in 1983. |
| Where is Alliance Healthcare Services headquartered? | Alliance Healthcare Services is headquartered in Los Angeles, CA, United States. |
| Is Alliance Healthcare Services publicly listed? | No, Alliance Healthcare Services was acquired by Akumin in June 2021. |
| Who acquired Alliance Healthcare Services? | Alliance Healthcare Services was acquired by Akumin in June 2021. |
| How much was Alliance Healthcare Services acquired for? | Alliance Healthcare Services was acquired for $820M in June 2021, a 1.7x revenue multiple. |
| Who are Alliance Healthcare Services' investors? | Alliance Healthcare Services' investors include Oaktree Capital Management and MTS Health Investors. |
| Which companies are comparable to Alliance Healthcare Services? | Companies comparable to Alliance Healthcare Services include Radiant Life Care Private Ltd, Gushengtang Holdings, Hospitales MAC, Dr. Sulaiman Al Habib Medical Services, WELL Health and Terveystalo. |
| How many companies has Alliance Healthcare Services acquired? | Alliance Healthcare Services has acquired 6 companies, including e+CancerCare, Vertical Health Solutions, SMT Health Services, Medical Diagnostics and American Shared-CuraCare. |
| What was the largest acquisition by Alliance Healthcare Services? | The $100M acquisition of Mobile Technology in January 1998 is the largest acquisition Alliance Healthcare Services has made to date. |
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