Uncategorized

Cross Country Healthcare To Acquire Assets of Advantage RN

BOCA RATON, Fla. — Cross Country Healthcare, Inc. (NASDAQ:CCRN), a
leading provider of healthcare staffing and workforce solutions,
announced today that it has signed a definitive agreement to acquire
substantially all of the assets and business of Advantage RN and its
affiliates (collectively, “Advantage”) for an aggregate purchase price of
$88 million, subject to a post-closing working capital adjustment.

Founded in 2003 and headquartered in West Chester, Ohio, Advantage is one
of the largest independent travel nurse staffing companies in the United
States. Advantage deploys many of its nurses through Managed Service
Providers and Vendor Management Systems and maintains strong direct
relationships with many hospitals. The founder and CEO of Advantage, Matt
Price, will remain with the business after the transaction closes. For
the year ended December 31, 2016 Advantage had revenue of approximately
$100 million and a normalized EBITDA (refer to Non-GAAP financial
measures below for definition) of approximately $10.0 million.

Cross Country Healthcare President and CEO William J. Grubbs said, “The
acquisition of Advantage’s business represents a strategically compelling
opportunity for Cross Country Healthcare to increase our supply of
healthcare professionals, expand our capture rate at our Managed Service
Providers accounts, and expand our Workforce Solutions business by
offering our full suite of services to certain of Advantage’s clients.
From a financial perspective, we expect this transaction to create
significant value for our shareholders and meaningful earnings accretion
in 2017 through increased scale and accelerated growth opportunities.”

The Company is financing the acquisition through a combination of
cash-on-hand and borrowings under its senior credit facility. In
connection with this transaction, the Company has also entered into a
commitment to increase the borrowing capacity under its current credit
facility by $40 million.

It is anticipated that the closing will occur during the third quarter of
2017, the consummation of which is subject to customary closing
conditions.

The foregoing description does not purport to be complete and is
qualified in its entirety by reference to the full text of the Purchase
Agreement that will be filed as Exhibit 1.01 to our Form 8-K.

Tags: Uncategorized

Related Articles

Menu