AMN Healthcare Completes Two Acquisitions
AMN Healthcare Services, Inc. (NYSE: AMN) today announced that it has completed two acquisitions: MedPartners, a leading national mid-revenue cycle firm; and two related brands in healthcare leadership solutions, Phillips DiPisa and Leaders For Today.
MedPartners, based in Tampa, Florida, provides solutions that help maximize healthcare facilities' revenue integrity, improve patient care management and support care-quality reporting requirements. The purchase price was $195 million, with up to an additional $20 million based on future financial performance. MedPartners generated 2017 revenue of approximately $125 million with an adjusted EBITDA margin of 16%. The MedPartners acquisition is expected to be immediately accretive to AMN's earnings per share.
"As the leading healthcare workforce provider, we understand the growing need for healthcare facilities to optimize revenue to provide a more effective, quality patient care experience," said Susan Salka, President and Chief Executive Officer of AMN Healthcare. "With the acquisition of MedPartners, we can deliver a full range of mid-revenue cycle solutions that include Case Management, Clinical Documentation Improvement (CDI), Medical Coding and Registry Services to our clients and healthcare professionals. The combination of Peak Health Solutions and MedPartners positions AMN Healthcare as the leading provider of mid-revenue cycle workforce solutions."
Marci Wilhelm, President and Co-Founder of MedPartners added, "We are proud of the work we have done to move the healthcare industry forward, delivering the highest quality services to our clients and opportunities to our candidates. We are looking forward to bringing our capabilities to AMN Healthcare and expanding the reach of our innovative solutions."
The transaction is structured to allow AMN to realize tax benefits having an estimated net present value of approximately $25 million. The acquisition was funded through the Company's revolving credit facility. This business will be included in the Company's Other Workforce Solutions segment for financial reporting purposes.
Phillips DiPisa and Leaders For Today
Phillips DiPisa and Leaders For Today, based in the Boston area, offer a range of leadership staffing and permanent placement solutions for the healthcare industry. Phillips DiPisa is a nationwide executive retained search firm with branch offices in Atlanta, Chicago, Los Angeles and Philadelphia. Leaders For Today provides interim and permanent leadership workforce solutions. Both businesses have a particularly strong presence and market share in the important Northeast region. The purchase price was $30 million, with potential for an additional $7 million based on future financial performance, and was funded out of cash on hand. The combined companies generated 2017 revenue of approximately $23