Danam Health Merger with Assure Holdings Signals Major Shift in Pharmaceutical Services Landscape

All-Stock Transaction Values Combined Company at $150 Million; Deal Expected to Close in Q2 2024

Danam Health Inc., a rapidly growing player in integrated pharmaceutical and healthcare solutions, has signed a definitive merger agreement with Assure Holdings Corp. (Nasdaq: IONM), marking a significant consolidation in the medical services sector. Through this all-stock transaction, Danam Health will integrate with a newly-created Assure subsidiary while maintaining its operational independence as a wholly-owned entity. Following the combination, Assure will rebrand as “Danam Health Holdings Corp.” and continue trading on Nasdaq.

What’s Driving This Integration?

The merger represents a strategic confluence of two complementary business models. Danam Health brings a comprehensive pharmaceutical ecosystem encompassing pharmacy operations, wholesale distribution, and a proprietary hub-and-clinical services technology platform. Assure contributes deep expertise in specialized medical services, creating a unified healthcare delivery system positioned to serve multiple stakeholder groups—from pharmacy networks and healthcare providers to pharmaceutical manufacturers and insurance companies.

“This merger vehicle opens pathways for accelerated expansion,” explained Suren Ajjarapu, who will chair the combined entity post-closing. “Danam Health’s core mission centers on eliminating inefficiencies in patient care through automation, cost optimization, and technology-enabled coordination across the entire pharmaceutical value chain.”

The Deal Structure and Ownership Split

The transaction operates on a pure equity exchange mechanism: Danam Health shareholders will receive Assure shares in a predetermined ratio. On a pro forma basis, Danam Health stakeholders are projected to hold approximately 90% of the combined company, while existing Assure shareholders will represent roughly 10%. The transaction carries an implied enterprise value of approximately $150 million on a fully diluted basis.

Both company boards have unanimously endorsed the merger agreement. The combined organization will operate under governance established by five directors designated by Danam Health, with Ajjarapu assuming the chairmanship upon deal completion.

Danam Health’s Competitive Edge

Danam Health operates as an integrated platform addressing multiple dimensions of pharmaceutical management: access barriers, care coordination protocols, medication dispensing, logistics and delivery infrastructure, and clinical oversight for medications ranging from specialty-lite compounds to routine maintenance therapies. The organization emphasizes patient-centric innovation, working to reshape healthcare delivery around individual patient needs rather than traditional institutional structures.

The company serves a diverse constituency including independent and chain pharmacies, medical providers, drug manufacturers seeking distribution solutions, and payers evaluating cost-effectiveness. By consolidating fragmented pharmaceutical services into a unified platform, Danam Health aims to improve outcomes while reducing system friction.

Path to Completion and Closing Conditions

Regulatory and operational requirements must align before the transaction concludes, anticipated for Q2 2024. Essential prerequisites include shareholder approval from both organizations, completion of targeted acquisitions by Danam Health, execution of asset sales by Assure, and Nasdaq validation of the combined company’s listing eligibility.

Joseph Gunnar & Co. is providing financial advisory services to both parties. Legal representation flows through Dorsey & Whitney (Assure) and Dykema Gossett (Danam Health).

Market Context

This integration underscores intensifying consolidation within healthcare services and pharmaceutical distribution. By combining pharmacy operations, logistics capabilities, and clinical technology, the merged entity positions itself to compete more effectively against larger incumbents while maintaining specialized focus areas that niche operators cannot easily replicate.

Forward-Looking Considerations

While transaction parties project meaningful synergies, standard risks apply: regulatory delays, shareholder rejection, market conditions affecting Assure’s stock price, and integration execution challenges. The companies have disclosed comprehensive risk factors in SEC filings, available through standard disclosure channels and both organizations’ investor relations functions.

Contacts:

• Assure: Brett Maas, Managing Principal, Hayden IR
• Danam Health: Corporate Communications, 844-251-4691