Apollo To Buy Sun Clinical Labs For $4 Million
Apollo Medical Holdings (ApolloMed-Alhambra, CA) has agreed to purchase a majority stake in Sun Clinical Laboratories (Sun Labs-El Monte, CA) for $4 million in cash. The deal is expected to close within three months.
Sun Labs is a small independent routine clinical lab with 19 patient service centers located across the San Gabriel Valley in southern California. Sun Labs was founded by its CEO Francis Sun in 1980.
ApolloMed is a publicly-traded company that manages 14 independent physician associations (IPAs) with 7,000 contracted physicians located primarily in California. Apollo’s IPAs have capitated contracts with insurers (Aetna, Anthem, Cigna, Humana, UnitedHealthcare, etc.) covering a total of 1.13 million members. ApolloMed, which is expanding into New York and Florida, anticipates growing to a total of 10,000 contracted physicians, two million covered lives, and $700 million of revenue by the end of this year.
Apollo had already been using Sun Labs for testing services. “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,” according to Kenneth Sim, MD,
Chairman and Co-Chief Executive of ApolloMed.