Apollo Medical Holdings Inc. said late last month that it would merge with Network Medical Management Inc. in the first half of this year, putting the vast majority of the Glendale public company’s shares under control of Network Medical’s shareholders.

While no specific financial terms of the deal were disclosed, the deal appears to be a reverse merger, allowing privately held, Alhambra-based Network Medical to go public.

The deal solidifies what was already a close relationship between the companies.

According to Apollo’s latest proxy statement, filed in July, Network Medical already held all of the company’s Series A and Series B preferred stock. Under the terms of the recent deal, shareholders of Network Medical, which already controlled 37 percent share of Apollo’s common stock, will own approximately 80 percent of the new joint entity, which will operate under the Apollo Medical Holdings banner.

Investors cheered the move, sending the value of Apollo shares up by 100 percent in the wake of the announcement. The company closed the week ended Dec. 28 at $8, up $4.01.

Neither company responded to requests for comment.

Both businesses provide integrated health care management services and work with physicians and hospitals. The merger creates a company that, according to a statement released by Apollo, would have produced $330 million in revenue in 2015 by managing health care for more than 700,000 patients. The combined entity would have had more than 3,000 physicians in its network and 400 employees.

Network Medical Chief Executive Thomas Lam, who has sat on Apollo’s board since January of last year, said in a statement that the deal represents an opportunity for the companies to combine operations and create new efficiencies.

“Our two organizations complement each other and will allow us to advance our integrated care delivery model,” Lam said.

The merger comes after several large investments by Network Medical in Apollo. Network Medical sunk $10 million into the company in October 2015 and an additional $5 million in March of last year. As part of the merger, Network Medical agreed to provide an additional $5 million working capital loan to Apollo within five days of the merger.

The cash should help Apollo stay solvent despite losses of $2.4 million in the six months prior to its third-quarter earnings report for the period ended Sept. 30. The company said in the filing that its cash reserves had dwindled to $3.8 million as it covered its losses.

“Our long-term ability to continue as a going concern is dependent upon our ability to increase revenue, reduce costs, achieve a satisfactory level of profitable operations, and obtain additional sources of suitable and adequate financing,” the Securities and Exchange Commission filing reads.

Dr. Warren Hosseinion, Apollo’s chief executive and largest individual shareholder, with a 19.4 percent stake, said the merger would allow for continued expansion.

“The merger will create a platform with a comprehensive suite of solutions for physicians, hospitals, health plans, and accountable care organizations,” Hosseinion said in a statement.

Once the merger is completed, Lam is set to join Hosseinion as co-chief executive of the new company. Network Medical Chairman Kenneth Sim will become the company’s executive chairman, while Apollo’s current executive chairman, Gary Augusta, will serve as president.