AMN Healthcare to Acquire Advanced Medical for $200 Million to Expand Healthcare Talent Network

VCBeat (WeChat ID: vcbeat) has learned that AMN Healthcare (NYSE: AMN), a healthcare workforce solutions company, recently announced it had entered into a definitive agreement to acquire Advanced Medical for $200 million. Based on Advanced Medical’s 2019 financial performance, AMN Healthcare may also pay up to an additional $20 million.

This acquisition is intended to help AMN Healthcare achieve tax benefits. Upon completion of the acquisition, the company's earnings per share are expected to increase, bringing its net present value to $8 million. The acquisition is expected to be completed in June 2019.

Advanced Medical is an innovative healthcare staffing company headquartered in Florida, United States. The company is dedicated to placing therapists and nurses in suitable positions across various settings, including hospitals, schools, clinics, nursing facilities, and home health agencies. It has earned a strong reputation in the industry for its ability to provide healthcare professionals to critical clinical specialties facing severe staffing shortages.

Recently, Advanced Medical launched a telehealth platform through which health therapists can remotely provide services to children in large school districts. The company’s current annual profit is approximately $140 million.

AMN Healthcare, established in March 1985 and headquartered in California, USA, is the largest healthcare staffing firm in the United States. It is dedicated to providing workforce solutions and staffing services to healthcare organizations across the country. The company’s workforce solutions encompass managed service systems, recruitment process outsourcing, human resources consulting services, and predictive modeling capabilities. AMN Healthcare engages physicians, nurses, and allied health professionals through both contract and permanent placement models, helping clients reduce workforce complexity, enhance operational efficiency, improve patient outcomes, and optimize the healthcare environment.

AMN Healthcare is experiencing rapid growth. In 2017, the company established its second headquarters in Dallas, Texas. Over four years, its annual revenue doubled, reaching $2.1 billion by the end of 2018. Annual net profit increased by 326% year-on-year, rising from $33 million in 2014 to $141 million in 2018. The acquisition of Advanced Medical will further expand the company’s scale.

Susan Salka, President and Chief Executive Officer of AMN Healthcare, stated: “Advanced Medical is set to become part of AMN Healthcare, strengthening the company’s offerings in nursing environments. We are highly interested in Advanced Medical’s recently launched telehealth platform, which provides treatment to children across China and holds significant growth potential. Additionally, this acquisition will expand AMN Healthcare’s healthcare talent network and enhance our ability to facilitate employment, addressing the current imbalance between talent supply and demand.”

Jennifer Fuicelli, CEO of Advanced Medical, stated, “AMN Healthcare will further accelerate our unique position in training healthcare talent. Moving forward, we will continue to provide innovative solutions for the healthcare sector.”

(Compiled by Jiao Yanli)