Shares of the Plymouth Meeting, Pa., company at last check were up 13% at $33.66.
Under the terms of the transaction, AdaptHealth will pay $1.1 billion in cash and 31 million common shares for AeroCare.
The deal is expected to close in the first quarter, subject to conditions including antitrust clearance, AdaptHealth said.
AeroCare, a respiratory and home medical equipment in Orlando, Fla., is owned by investors including Peloton Equity, SkyKnight Capital, SV Health Investors, and AeroCare management and employees.
AdaptHealth also raised its fiscal 2021 revenue guidance range to $2.05 billion to $2.2 billion from $1.3 billion to $1.4 billion. FactSet's consensus calls for revenue of $1.37 billion. The company also affirmed its full-year 2020 guidance.
The combined company will operate under the name AdaptHealth. Luke McGee, chief executive of AdaptHealth, and Steve Griggs, CEO of AeroCare, will become co-CEOs. Josh Parnes, president of AdaptHealth, will continue in that post at the combined company.
At closing, AdaptHealth will also expand its board to 11 directors, with Griggs and Ted Lundberg of Peloton Equity joining the board.
The company said the acquisition will boost its footprint to 47 states.
"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," McGee said in a statement.
Separately, AdaptHealth said it had closed its acquisition of New England Home Medical Equipment, Chelmsford, Mass., furthering the growth and expansion of its diabetes division.