Neuronetics (Nasdaq: STIM), a provider of transcranial magnetic stimulation (TMS), has acquired competitor Greenbrook TMS.

Neuronetics purchased all of Greenbrook’s outstanding common shares in an all-stock transaction. The deal comes months after Greenbrook was delisted from the Nasdaq Stock Market LLC.

“Beyond the strategic benefits, we believe this acquisition will help create a more attractive financial profile for the combined company, including the increased scale and growth trajectory of our top line, the ability to realize material cost synergies, the acceleration of our path to profitability, and a bolstered balance sheet,” Keith Sullivan, president and CEO of Neuronetics, said in a statement. “In combination, we expect this transaction will create significant long-term value for shareholders.”

Toronto-based Greenbrook was delisted from the Nasdaq in February after its share price fell below $1 and its total share value dropped below $35 million for 30 consecutive days. On the day it was officially removed from the stock market, its stocks were listed at 13 cents per share.

The TMS “pioneer” previously experienced rapid growth, at one point operating 183 clinics and employing around 850 people. In 2022, the company acquired Success TMS for roughly $27 million.

In 2023, Greenbrook began to reduce its operations. Its website currently lists 101 facilities across 18 states.

Malvern, Pennsylvania-based Neuronetics has provided TMS treatment to more than 175,000 patients and operates over 1,100 practices in the U.S.

In July, Sullivan, Neuronetics CEO, sold 23,762 shares of the company’s common stock for $46,086, according to Investing.com.

The deal will drive increased brand awareness of Neuronetics’s platform NeuroStar TMS, improve consistency of best practices at Greenbrook locations and centralize services, according to the companies.

The deal is also expected to increase revenue and drive growth. The companies estimate that in the 2023 fiscal year, the combined company’s pro forma revenue would have been around $145 million, “effectively doubling the scale of the stand-alone businesses.”

The newly combined company anticipates the realization of a minimum of $15 million in annualized cost savings and year-over-year revenue growth in the mid-teens in 2025 and 2026.

Neuronetics plans to be adjusted EBITDA positive and cash flow positive for the full fiscal year of 2025, not counting one-time costs associated with the acquisition of Greenbrook.

The company will maintain Neuronetics’ executive management team and bolster its leadership team with three Greenbrook executives: president and CEO Bill Leonard, chief financial officer Peter Willett and chief medical officer Dr. Geoffrey Grammer.