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Cross Country completes $88 million Advantage RN acquisition

July 06, 2017

Cross Country Healthcare Inc. (NASD: CCRN) completed its acquisition of Advantage RN LLC and its subsidiaries, effective July 1.

Cross Country acquired substantially all of the assets of Advantage RN for a total purchase price of $88 million, which is subject to a final net working capital adjustment. At closing, the company paid $86.8 million, net of cash acquired, using $19.9 million in available cash and $66.9 million in borrowing under its credit facility, including a $40 million incremental term loan.

The firm announced the deal last month.

The amount paid at closing was subject to an initial net working capital adjustment of $600,000, and an additional $600,000 was deferred and is due to the seller within 20 months, less any COBRA and healthcare expenses incurred by Cross Country on behalf of the sellers. Based on the total net leverage ratio, the combined interest rate at close is expected to be 3.5%.

Advantage RN, a West Chester, Ohio-based healthcare staffing provider founded in 2003, deploys many of its nurses through managed service providers and vendor management systems and maintains direct relationships with hospitals. It posted annual revenue of approximately $100 million in 2016. The company ranks No. 14 on Staffing Industry Analysts’ list of largest travel nurse staffing firms and No. 24 on the list of largest healthcare staffing firms overall in the US.

Cross Country also reaffirmed its second-quarter 2017 guidance, and now expects revenue to be in the middle of the $207 million to $212 million range; a midrange increase would be 5% year over year. Gross profit margin is now expected to be toward the upper end of the 26.0% to 26.5% range.

Cross Country, based in Boca Raton, Fla., ranks as the third-largest healthcare staffing firm in the US.

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