AdaptHealth Corp. has acquired Orlando, Fla.-based technology-enabled respiratory and home medical equipment distribution platform AeroCare Holdings, Inc. for $1.1 billion in cash and 31 million shares of AdaptHealth stock. Founded in 2000 by CEO Steve Griggs, AeroCare offers a comprehensive suite of direct-to-patient equipment and services including CPAP and BiPAP machines, oxygen concentrators, home ventilators, and other durable medical equipment products.

With this acquisition, AeroCare’s shareholders—including management and employees, and private investors Peloton Equity, SkyKnight Capital, SV Health Investors and investment funds managed by Morgan Stanley AIP Private Markets’ Secondaries Team—will become shareholders in AdaptHealth.

The combined company will operate under the name AdaptHealth, and Griggs will serve as co-CEO with Luke McGee, CEO of AdaptHealth, to lead the company. In addition, Griggs and shareholder designee Ted Lundberg of Peloton will join AdaptHealth’s Board of Directors, which will expand to 11 directors. Michael O’Rourke from Peloton and Jordan Milich from SkyKnight will join as observers to the board.

“I am very excited for AeroCare to join forces with AdaptHealth,” says AeroCare CEO, Steve Griggs. “The combined company is positioned to transform our industry and positively impact the lives of chronically ill patients across the country. Our management team and employees look forward to working with AdaptHealth to build an even stronger business, sharing best practices across each organization to drive operational efficiencies and create enhanced opportunities for our patients, referral sources, and other stakeholders.”

Tom Flynn, Managing Partner of SV Health Investors, also spoke out about the acquisition, commenting: “AeroCare and AdaptHealth have been at the forefront of the industry’s transition to technology-enabled workflows that drive operational efficiency and better care. This combination strengthens both companies and will benefit patients as more healthcare moves to the home.”