The transaction is valued at approximately USD278m, including the assumption or repayment of around USD79m of debt.
Under the agreement Allion shareholders will receive USD6.60 per share in cash, representing a premium of 30.2% over Allion's average share price for the five trading days prior to the announcement of the deal.
The transaction is expected to be completed in the first quarter of 2010, subject to customary closing conditions including regulatory clearance and shareholder approval.
Allion Healthcare sells HIV/AIDS medications, ancillary drugs and nutritional supplies under the trade name MOMS Pharmacy.
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