AMN Healthcare (NYSE: AMN), a prominent player in total talent solutions for healthcare organizations across the United States, has announced its plans to acquire MSDR, marking a significant move in the healthcare staffing sector. The definitive agreement, with a purchase price of $300 million, encompasses two healthcare staffing companies, Medical Search International (MSI) and DRW Healthcare Staffing (DRW), both of which specialize in locum tenens and advanced practices.
Meet the Companies:
MSI, established in 2002, is renowned for its services in placing high-quality healthcare professionals specializing in psychiatry, anesthesia, radiology, and surgery, serving healthcare systems throughout the United States. DRW, founded in 2011, boasts expertise in psychiatry, anesthesia, and surgery placements, making it a valued leader in the locum tenens industry. Notably, Chris Wang, the Chief Executive Officer and Managing Partner of DRW, will continue to contribute as the President of MSDR.
Growth Prospects and Financials:
This strategic acquisition positions AMN Healthcare for substantial revenue growth within the locum tenens sector. In 2022, MSDR generated $104 million in revenue, and the annualized revenue for 2023 stands at approximately $155 million. AMN anticipates the deal to be modestly accretive to adjusted earnings per share (EPS) within the first 12 months of integration.
The acquisition is slated to close in the fourth quarter of 2023, contingent on regulatory approvals and closing conditions. It will be treated as an asset purchase, creating a step-up in the tax basis for the intangible assets acquired.
Expanding Solutions and Expertise:
With the integration of MSDR, AMN Healthcare’s extensive portfolio of solutions is set to expand significantly. Clients will gain access to a larger and more diverse candidate pool, including healthcare professionals specializing in some of the most sought-after and in-demand services.
Moreover, the acquisition brings the wealth of expertise and knowledge of the MSDR team in recruitment, placement, and operations, coupled with candidate matching technology tailored for locum tenens. This move underscores AMN Healthcare’s commitment to delivering high-quality, tailored workforce solutions.
Commentary from Leadership:
AMN Healthcare President and Chief Executive Officer Cary Grace expressed enthusiasm about the acquisition, stating, “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.” The move signifies a strategic growth opportunity that positions AMN Healthcare as a stronger and more comprehensive player in the healthcare staffing industry, ultimately benefitting both healthcare organizations and the dedicated professionals they serve.
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