AMN Healthcare to Acquire MSDR
23 Octobre 2023 - 2:00PM
AMN Healthcare (NYSE: AMN), the leader and innovator in total
talent solutions for healthcare organizations across the United
States, today announced a definitive agreement to acquire MSDR for
a purchase price of $300 million. MSDR consists of two healthcare
staffing companies that specialize in locum tenens and advanced
practices, Medical Search International (MSI) and DRW Healthcare
Staffing (DRW).
MSI, founded in 2002, serves healthcare systems across the
United States by placing high-quality healthcare professionals that
specialize in psychiatry, anesthesia, radiology, and surgery. DRW,
founded in 2011, specializes in psychiatry, anesthesia, and
surgery. Both companies are valued leaders in the locums industry.
Chris Wang, Chief Executive Officer, Managing Partner of DRW, will
remain with the business as President of MSDR.
“We are very excited to welcome the MSDR team into the AMN
Healthcare family and expand the workforce solutions available to
our clients across the country,” said AMN Healthcare President and
Chief Executive Officer Cary Grace. “Now more than ever, it is
critically important that healthcare systems have streamlined
access to the services, technologies, and healthcare professionals
needed to support the patients and communities they serve. This
acquisition is the result of our continued dedication to meet the
needs of our clients, who I am confident will see the breadth and
value of our services increased with this acquisition of MSDR.”
The acquisition positions AMN Healthcare for substantial revenue
growth in locum tenens. MSDR revenue was $104 million in 2022, and
year-to-date annualized 2023 revenue is approximately $155 million.
We expect the deal will be modestly accretive to adjusted EPS in
the first twelve months. The acquisition, subject to regulatory
approvals and customary closing conditions, is expected to close in
the fourth quarter of 2023. This transaction is expected to be
funded with a combination of cash on hand and borrowings on our
revolving credit facility.
For income tax reporting purposes, the acquisition of DRW will
be treated as an asset purchase, resulting in a step-up in the tax
basis of the intangible assets acquired. This step-up in tax basis
is expected to result in an annual cash tax savings of
approximately $2 million over the next 15 years from the
amortization of these assets for income tax purposes.
With the acquisition of MSDR, AMN Healthcare’s portfolio of
solutions will expand to provide clients with a larger and more
diverse candidate pool that includes healthcare professionals that
specialize in some of the most needed, in-demand services. The
acquisition also allows AMN Healthcare and clients to benefit from
the expertise and knowledge of the MSDR team in recruitment,
placement, and operations, including candidate matching technology
that is tailored for locum tenens.
AdvisorsWells Fargo Securities served as
exclusive financial advisor to AMN for this transaction, and legal
counsel was provided by Sheppard Mullin. Nolan & Associates
acted as exclusive financial advisor to MSDR, and Morgan Lewis
provided legal counsel.
About AMN HealthcareAMN Healthcare is the
leader and innovator in healthcare total talent solutions to
healthcare facilities across the nation. The Company provides
unparalleled access to the most comprehensive network of quality
healthcare professionals through its innovative recruitment and
staffing strategies and breadth of career opportunities. With
insights and expertise, AMN Healthcare helps providers optimize
their workforce to successfully reduce complexity, increase
efficiency and improve patient outcomes. AMN delivers managed
services programs, healthcare executive search solutions, vendor
management systems, recruitment process outsourcing, predictive
labor analytics, revenue cycle management, credentialing solutions,
and other services. AMN Healthcare is committed to fostering and
maintaining a diverse team that reflects the communities we serve.
Our commitment to the inclusion of many different backgrounds,
experiences and perspectives enables our innovation and leadership
in the healthcare services industry.
ContactRandle ReeceSenior Director, Investor
Relations866.861.3229
AMN Healthcare Services (NYSE:AMN)
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