ALHAMBRA, Calif., June 2, 2021 /PRNewswire/ -- Apollo Medical
Holdings, Inc. ("ApolloMed," and together with its subsidiaries and
affiliated entities, the "Company") (NASDAQ: AMEH), a leading
physician-centric, technology-powered healthcare company focused on
value-based care, today announced that the Company has entered into
a definitive agreement with Sun Clinical Laboratories
("Sun Labs"), under which ApolloMed
will purchase controlling interests in Sun
Labs for $4.0 million.
Sun Labs is a CLIA-certified
full-service lab that operates 19 locations across the San Gabriel
Valley in southern California. The
combination will allow ApolloMed to fully incorporate Sun Labs, an existing partner, into its
integrated value-based care delivery platform, leading to greater
operational efficiencies for ApolloMed and more integrated care for
ApolloMed's members. ApolloMed will have the opportunity to
leverage its extensive network and business development expertise
to guide the expansion of Sun Labs
into other geographic regions. Upon closing, ApolloMed expects to
consolidate Sun Labs' financials
into its GAAP results.
Kenneth Sim, M.D., Executive
Chairman and Co-Chief Executive Officer of ApolloMed, stated, "We
are pleased to have entered into this agreement with Sun Labs, whereby ApolloMed will serve as the
exclusive administrator of all daily business functions of
Sun Labs. We look forward to further
integrating Sun Labs into our
comprehensive care delivery platform, providing a seamless,
best-in-class experience for our affiliated physicians and members.
As ApolloMed expands its geographic footprint, we see Sun Labs as a core partner in this expansion,
growing the business and bringing high-quality lab services to more
patients across the nation. We are also incredibly excited about
Sun Labs' cutting-edge work in
genomic testing, which will add greatly to ApolloMed's commitment
to remaining at the forefront of medicine by supporting more
personalized cancer care among the communities in which it
operates."
Frances Sun, Chief Executive
Officer of Sun Labs, stated, "We
believe we have found the ideal partner in ApolloMed, which has
significant expertise in alleviating the administrative burden of
operating various healthcare practices and businesses through its
MSOs. For over 40 years, we have provided valuable diagnostic
services to the people of the San Gabriel Valley, and we look
forward to working closely with the ApolloMed team in improving and
growing our business in the months and years to come."
The transaction is subject to customary closing conditions.
ApolloMed will fund the transaction from cash on hand. This
transaction is expected to close within the next three months.
About Apollo Medical Holdings, Inc.
ApolloMed is a
leading physician-centric, technology-powered, risk-bearing
healthcare company. Leveraging its proprietary end-to-end
technology solutions, ApolloMed operates an integrated healthcare
delivery platform that enables providers to successfully
participate in value-based care arrangements, thus empowering them
to deliver high quality care to patients in a cost-effective
manner.
Headquartered in Alhambra,
California, ApolloMed's subsidiaries and affiliates include
management services organizations (MSOs), affiliated independent
practice associations (IPAs) and a Next Generation Accountable Care
Organization (NGACO). For more information, please visit
www.apollomed.net.
Forward Looking Statements
This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, such as statements
about ApolloMed's investment in, strategic arrangements with, and
anticipated consolidation of, Sun
Labs, and ApolloMed's and Sun
Labs' growth, acquisition strategy, ability to deliver
sustainable long-term value, operational focus, strategic growth
and expansion plans and integration efforts. Forward-looking
statements reflect current views with respect to future events and
financial performance and therefore cannot be guaranteed. Such
statements are based on the current expectations and certain
assumptions of ApolloMed's management, and some or all of such
expectations and assumptions may not materialize or may vary
significantly from actual results. Actual results may also vary
materially from forward-looking statements due to risks,
uncertainties and other factors, known and unknown, including the
risk factors described from time to time in ApolloMed's reports
filed with the Securities and Exchange Commission, including,
without limitation, the risk factors contained in ApolloMed's
Annual Report on Form 10-K for the year ended December 31, 2020, and any subsequent Quarterly
Reports on Form 10-Q.
FOR MORE INFORMATION, PLEASE CONTACT:
Investor
Relations
(626) 943-6491
investors@apollomed.net
Carolyne Sohn, The Equity
Group
(415) 568-2255
csohn@equityny.com
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SOURCE Apollo Medical Holdings, Inc.