AMN Healthcare Services Inc., a San Diego-based nurse staffing company, said it acquired all the stock of MHA Group Inc., an Irving, Texas, company providing physician and related health care staffing, for $160 million plus minimum earn-out provisions of $35 million.
The combination of the two companies would generate annual revenues of $889 million, based upon revenues for each business through the end of June, and create the largest health care staffing firm in the nation, according to AMN.
“Our complementary businesses will enable hospitals to further streamline their recruitment and staffing efforts through a stronger partnership with our company,” said Susan Nowakowski, the president and chief executive of AMN Healthcare.
Once the transaction is completed, expected in the fourth quarter of this year, AMN Healthcare would own 91 percent of the newly merged company with the remaining 9 percent owned by MHA shareholders.
The negotiated price was 75 percent cash and 25 percent in stock.
AMN said it will pay for the acquisition with cash on hand, and $280 million in financing through a six-year term loan for $205 million, and $75 million from a revolving credit line.
Shares of AMN, traded on the New York Stock Exchange under the ticker AMS, rose 51 cents on Oct. 6, the day following the news of the deal, to $15.33. The stock has ranged from $10.70 to $17.46 in the past 52 weeks. The price gave AMN a market capitalization of $441 million.