AMN Healthcare Services, Inc., the leading innovator in healthcare workforce solutions and staffing services, today announced the completion of the acquisition of Advanced Medical Personnel Services, Inc. (Advanced) for a base purchase price of $200 million, with up to an additional $20 million to be paid if Advanced achieves certain financial results as of December 31, 2019. Advanced is an allied and nurse staffing firm that serves hospitals, schools, clinics, skilled nursing facilities, and home health settings.
“The addition of the innovative Advanced organization into the AMN family of companies is an exciting event for all of our stakeholders – our clients, healthcare professionals, team members and our shareholders,” said Susan Salka, President and CEO of AMN Healthcare. “Advanced brings a very talented team that will enable us to collectively serve our nursing and allied clients most effectively during the current and expected future strong demand environment. We are also excited about the innovative approach Advanced has created to deliver therapy services in school settings to care for children during their critical development years. With the added capabilities that Advanced brings to AMN, we can continue to solve the most difficult workforce challenges facing the healthcare industry – today and in the future.”
“As part of AMN Healthcare, our combined teams will deliver the healthcare industry’s most innovative and comprehensive services to a wide range of facilities, including schools, where the need for clinicians is strong,” said Jennifer Fuicelli, CEO of Advanced. “We firmly embrace the AMN mission to provide the highest quality healthcare practitioners and workforce solutions in order to improve the outcomes and experience for patients across the country.”
The acquisition of Advanced is expected to add approximately $5 million of revenue to our second quarter 2019 results. We expect Advanced to contribute $70-75 million revenue and approximately $10 million adjusted EBITDA in the second half of 2019, with its fourth quarter revenue approximately 15% greater than in the third quarter due to the seasonality of Advanced’s school staffing business. On a combined basis, AMN’s income tax rate for the second half of the year is expected to be 30% due to a higher tax rate for Advanced. Advanced will add about $0.25 million to depreciation expense in each of the third and fourth quarters.
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
To finance the acquisition, AMN used $51 million in capacity available under its existing secured revolving credit facility, and amended our credit facility to obtain a new $150 million term loan maturing in June 2024. The amendment also extended the maturity of our secured revolving credit facility to June 2024.
Date: June 24, 2019
Source: Cision
