Benzinga | Jul 19, 2021 08:11AM EDT

Apollo Medical Holdings, Inc. Announces Affiliate's Entry Into Agreement To Acquire 80% Stake In Access Primary Care Medical Group

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 enabling providers in the successful delivery of value-based care, today announced its affiliate AP-AMH 2 Medical Corporation has entered into a definitive agreement to acquire 80% of the fully diluted capitalization of Access Primary Care Medical Group ("APCMG"), a primary care physicians' group focused on providing high-quality care to senior patients.

According to the terms of the agreement, 50% of the purchase price will be paid in cash to APCMG within 10 business days of the closing of the transaction, and the remaining 50% will be paid upon APCMG achieving certain financial milestones in 2022. The Company anticipates closing this transaction in the third quarter of 2021 and will fund the transaction from cash on hand.

Primarily serving patients in the northern California cities of Daly City and San Francisco, APCMG is a risk-bearing organization that has successfully provided professional services to seniors under capitation arrangements with its contracted payer partners since 2016.

The deal will Bring ApolloMed's technology and operations platform to over 120 APCMG primary and specialty care providers serving approximately 1,000 Medicare Advantage members. The Company has also provided management services to APCMG since 2016.

Kenneth Sim, M.D., Executive Chairman and Co-Chief Executive Officer of ApolloMed, stated, "We are thrilled with the expansion of our existing partnership with APCMG, an impressive group of primary care physicians that is committed to delivering affordable, high-quality value-based care to local communities. APCMG will provide ApolloMed with a strong foothold in the Bay Area with the opportunity to expand from San Francisco down the Peninsula."

Romeo David, M.D., Chief Executive Officer of APCMG, added, "ApolloMed has been a trusted partner of APCMG for the past several years as our MSO. This was a logical next step in our relationship, and we are excited about the possibilities for our organization as our physicians gain access to the many benefits presented by ApolloMed's physician-centric, tech-powered platform and decades of success in delivering value-based care in California."