Cross Country Healthcare has signed a definitive agreement to acquire Mediscan, a US-based provider of temporary healthcare staffing and workforce solutions to the healthcare and education markets.
Mediscan, which is largely focused in California, offers services across 11 states to more than 300 clients in over 70 specialties.
With the acquisition, Cross Country will expand its customer reach into acute care hospitals, particularly in the large and growing California market, as well as add a new customer base in the growing education staffing market.
Upon completion of the transaction, one of Mediscan’s founding members Val Serebryany and president Dennis Ducham will remain with the business.
Under the deal, the purchase price includes $28m in cash and $5m in shares of the company’s common stock, and is subject to a net working capital adjustment.
The company is financing the acquisition through a combination of cash-on-hand and borrowings under its senior credit facility.
Cross Country Healthcare president William Grubbs 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."
For fiscal year 2015, Mediscan is expected to generate $40m in revenues and 10% adjusted EBITDA.
Subject to customary closing conditions, the transaction is expected to be completed during the fourth quarter.
Ducham said: "We are excited for our well-established healthcare staffing business to join an organisation 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."