BOCA RATON, Fla.--(BUSINESS WIRE)--
Cross Country Healthcare, Inc. (Nasdaq:CCRN) announced today that it has
signed a definitive agreement to acquire Mediscan. Founded in 1995 and
headquartered in Woodland Hills, CA, Mediscan provides temporary
healthcare staffing and workforce solutions to both the healthcare and
education markets. While largely concentrated in California, Mediscan
provides services across 11 states to more than 300 clients through more
than 70 specialties. The acquisition will expand Cross Country's
customer reach into acute care hospitals, particularly in the large and
growing California market, and it will add a new customer base in the
growing education staffing market. One of Mediscan's founding members,
Val Serebryany, as well as its President and Chief Executive Officer,
Dennis Ducham, will remain with the business after the transaction
closes.
According to the terms of the agreement, the purchase price includes $28
million in cash and $5 million in shares of the Company's Common Stock,
and is subject to a net working capital adjustment. Sellers are also
eligible to receive an earn-out based on Mediscan's 2016 and 2017
performance that could provide up to an additional $7 million of cash
over the two years. The 349,871 shares of Common Stock to be delivered
at the closing will be subject to a lockup period. The Company is
financing the acquisition through a combination of cash-on-hand and
borrowings under its senior credit facility. Mediscan is projected to
generate approximately $40 million in revenues for fiscal year 2015 and
approximately 10% Adjusted EBITDA. The transaction is subject to
customary closing conditions, and is expected to close during the fourth
quarter.
William J. Grubbs, President and Chief Executive Officer of Cross
Country Healthcare, Inc., said, "Mediscan not only expands our
healthcare staffing offerings but extends our reach into both the fast
growing public school and charter school markets which are also large
users of healthcare staffing services. Mediscan's proven leadership team
built a strong brand, and we see significant growth opportunities in
both the healthcare and education markets. We believe that adding
Mediscan will enable us to accelerate our revenue growth and improve
margins. We are pleased to welcome the Mediscan team to our Cross
Country family."
Dennis Ducham, President and Chief Executive Officer of Mediscan, said,
"We are excited for our well-established healthcare staffing business to
join an organization that shares our focus on providing quality
healthcare professionals. The two companies have quite similar cultures,
putting people first and providing the best professional for each
assignment."
About Cross Country Healthcare
Cross Country Healthcare, Inc., headquartered in Boca Raton, Florida, is
a national leader in providing leading-edge healthcare workforce
solutions. Our solutions are geared towards assisting our clients solve
labor cost issues while maintaining high quality outcomes. With more
than 30 years of experience, we are dedicated to placing highly
qualified nurses and physicians as well as allied health, advanced
practice, clinical research, and case management professionals. We
provide both retained and contingent placement services for physicians,
as well as retained search services for healthcare executives. We have
more than 6,000 active contracts with a broad range of clients,
including acute care hospitals, physician practice groups, nursing
facilities, rehabilitation and sports medicine clinics, government
facilities, as well as nonclinical settings such as homecare and
schools. Through our national staffing teams and network of more than 70
branch office locations, we are able to place clinicians for travel and
per diem assignments, local short-term contracts and permanent
positions. We are a market leader in providing flexible workforce
management solutions, which include managed services programs (MSP),
workforce assessments, internal resource pool consulting and
development, electronic medical record (EMR) transition staffing and
recruitment process outsourcing.
Copies of this and other news releases as well as additional information
about Cross Country Healthcare can be obtained online at www.crosscountryhealthcare.com.
Shareholders and prospective investors can also register to
automatically receive the Company's press releases, SEC filings and
other notices by e-mail.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151019006572/en/
Cross Country Healthcare, Inc.
William J. Grubbs, 561-237-6202
President
and Chief Executive Officer
wgrubbs@crosscountry.com
Source: Cross Country Healthcare, Inc.
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