Thoughts on the AMN Acquisition of Medfinders

Amn1 In a move resulting in further consolidation of the healthcare staffing industry, American Mobile Nursing (AMN) announced last week their acquisition of one of their competitors Medfinders.

The deal between AMN and Medfinders is valued at approximately $220 million (including approximately $132M of refinanced debt for Medfinders). AMN granted 6.3 million shares of common stock and 5.7 million shares of preferred stock to Medfinders who's shareholders will will now effectively own approximately 26% of AMN.

Medfinders is the 7th largest healthcare staffing agency in the nation and has done a great job securing large MSP accounts across the country. This acquisition is another in a long line of acquisitions that AMN has made over the last few years.

Medfinders-logo From my perspective, this was a great move for AMN. Medfinders has a great reputation and is a solid provider of Per Diem and Travel Nursing and Allied staff, as well as Locums Tenens. Acquiring MedFinders will further enhance AMN's brand and expand their offerings in Locums, Allied and Nursing. Further, I believe this is the first time that AMN will now be able to provide Per Diem staff under their brand.

AMN will also gain a significant book of VMS/MSP business through this acquisition. Perhaps the best benefit to AMN is that they will now be better positioned to deliver more comprehensive MSP offerings by delivering both Long Term Contract and Per Diem nursing staff to their hospital clients. It will certainly make them more of a threat to their competition in the MSP/VMS space.

It will be interesting to watch the results in the market from this acquisition.

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