AMN Healthcare Acquires Avantas
Expands Workforce Solutions Offering with Leading Provider of Healthcare Workforce Consulting and Analytics
Dec 22, 2014
SAN DIEGO, Dec. 22, 2014 /PRNewswire/ -- AMN Healthcare Services, Inc. (NYSE: AHS), the nation's leader and innovator in healthcare workforce solutions and staffing services, today announced the acquisition of Avantas, a leading provider of clinical labor management services, including workforce consulting, data analytics, predictive modeling and SaaS-based scheduling technology.
Avantas provides services and technology tools that help clients optimize and plan their clinical workforce to cost-effectively handle patient demand. Their enterprise labor management methodology includes best practice consulting services and the nation's leading technology-enabled predictive workforce modeling to enable more effective labor planning. Avantas received the highest rating for a staff scheduling company in its category by KLAS, a leading healthcare industry research firm, which also identified Avantas as "the most promising human capital niche/focused vendor for staff scheduling" based on its Smart Square® technology. Avantas is based in Omaha, Nebraska and will retain its brand, location and leadership.
"With labor representing more than half of costs at healthcare facilities, providers are in great need of accurate, dependable analytics and information to make critical forecasting and staffing decisions," said Susan Salka, President and Chief Executive Officer of AMN Healthcare. "Both AMN and Avantas have been focused on providing workforce solutions that enable the quality of care, cost savings, efficiency, and business insight needed by our clients today. By bringing Avantas into the AMN portfolio of services, our clients will benefit from best-practice strategies, resource management expertise, innovative technologies, and access to clinical labor that is unrivaled in the industry."
Chris Fox, CEO of Avantas, added, "For our current clients, this is a terrific opportunity to leverage the strengths of two best-in-industry companies. Together, we can provide a level of workforce predictability integrated with expert workforce and staffing solutions that has never before been achieved in healthcare. Avantas is devoted to serving the healthcare industry, and we are excited to expand our reach and add to the value AMN already provides its clients."
The purchase price includes an initial payment of $16.5 million, with an earn-out potential of up to $8.5 million based on future operating performance. The acquisition was funded out of cash on hand and borrowings under the Company's existing revolving credit facility. The 2014 projected revenue of Avantas is approximately $8 million, and the acquisition is expected to be neutral to AMN's earnings in 2015 and accretive by 2016. Avantas was acquired from Catholic Health Initiatives/Alegent Creighton Health. Further information regarding this acquisition will be provided during AMN's fourth quarter 2014 earnings call to be held in February 2015.
About AMN Healthcare
AMN Healthcare is the innovator in healthcare workforce solutions and staffing services to healthcare facilities across the nation. AMN Healthcare's workforce solutions -- including managed services programs, vendor management systems and recruitment process outsourcing -- enable providers to successfully reduce complexity, increase efficiency and improve patient outcomes within the rapidly evolving healthcare environment. The Company provides unparalleled access to the most comprehensive network of quality healthcare professionals through its innovative recruitment strategies and breadth of career opportunities. Clients include acute-care hospitals, community health centers and clinics, physician practice groups, retail and urgent care centers, home health facilities, pharmacies and many other healthcare settings. AMN Healthcare disseminates news and information about the Company through its website, which can be found at www.amnhealthcare.com.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include expectations regarding the acquired company's 2014 projected revenue and anticipated 2015 and 2016 accretion to the Company's earnings. The Company based these forward-looking statements on its current expectations, estimates and projections about future events and the industry in which it operates using information currently available to it. Actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Factors that could cause actual results to differ from those implied by the forward-looking statements contained in this press release are set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 and its other periodic reports as well as the Company's current and other reports filed from time to time with the Securities and Exchange Commission.
Vice President, Investor Relations
SOURCE AMN Healthcare Services, Inc.