Hangar Inc shares go up 25% after announcing a definitive merger agreement with Patient Square

Hangar Inc (NYSE: HNGR), a top provider of O&P (orthotic and prosthetic) patient care solutions and services, stock went up 25% after it announced that it has executed a definitive purchase agreement with Patient Square Capital, a healthcare investment company, where the later will acquire it in cash for $18.75 per share.

Details of the agreement 

According to the purchase agreement, which was unanimously approved by the company’s BoD, Hangar Inc shareholders will get $18.75 per share in cash, representing a premium of roughly 29% to the 30-day calendar VWAP (volume-weighted average price) ending July 20, 2022. This will come alongside an enterprise value of roughly $1.25 billion.

Once the transaction is complete, Hangar Inc will turn into a private-held corporation, and its common shares won’t be tradable on the NYSE (New York Stock Exchange) anymore. The deal is expected to be complete by the fourth quarter of the 2022 financial year.

Management statements 

Hangar Inc’s Chief Executive Officer and President, Vinit Asar claimed he was happy to be announcing this deal as the agreement will lead to more substantial and immediate value creation for their stakeholders.

Mr. Asar said:

Mr. Asar claims that Patient Square Capital is the perfect partner because they share a similar long-term vison.

Jim Momtazee, Patient Square Managing Partner, said: