The home-based care provider landscape is rapidly changing, a point reflected in the industry-shaping mergers and multimillion-dollar deals that have taken place over the past couple of months.

But the home health supplier and equipment markets are undergoing a similar change, with the most recent business transaction announced on Tuesday.

In-home equipment supplier AdaptHealth Corp. (Nasdaq: AHCO) has entered into a definitive agreement to acquire AeroCare Holdings Inc., a technology-enabled respiratory and home medical equipment (HME) distribution platform.  AdaptHealth’s play for AeroCare values the company at approximately $2 billion. 

“Joining forces with AdaptHealth strengthens our combined ability to transform our industry and positively impact the lives of chronically ill patients across the country,” Steve Griggs, CEO of AeroCare, said in a statement.

Headquartered in Plymouth Meeting, Pennsylvania, the publicly traded AdaptHealth helps deliver home health equipment and medical supplies to patients in the home setting. Its offerings — often aimed at helping patients manage chronic conditions in the home — include equipment to treat diabetes, sleep disorders, respiratory illnesses and more.

AdaptHealth works with about 1.8 million patients annually in all 50 states, doing so across its network of 269 locations.

On its end, the Orlando, Florida-based AeroCare offers a suite of direct-to-patient equipment and services, including oxygen concentrators and home ventilators, along with CPAP and BiPAP machines.

Under terms of the agreement, AdaptHealth will pay $1.1 billion cash to AeroCare, with AeroCare also receiving 31 million shares of AdaptHealth common stock. AdaptHealth intends to fund the cash portion of the consideration and associated costs through incremental debt; it has committed debt financing from Jefferies Finance LLC, according to the company.

“This highly accretive transaction pairs up two industry leaders with similar strategies and strong execution track records of growth and profitability, technology innovation and patient service,” Luke McGee, CEO of AdaptHealth, said in a statement. “Our combined company will further enhance our geographic reach with a footprint in 47 of the 48 continental U.S. states, strengthening relationships with our referral partners, patients, manufacturers and managed health care plans.”

AeroCare is currently owned by private investors Peloton Equity, SkyKnight Capital, SV Health Investors and others.

Moving forward, the combined company will operate under the name AdaptHealth.

McGee and Griggs will jointly lead the company as co-CEOs.

In a Tuesday conference call, McGee said he has known the AeroCare leadership team for years, with the organizations having ongoing talks about potentially joining forces.

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