AMN Healthcare Services Inc. (NYSE: AMN), the largest healthcare staffing firm in the US, agreed to pay $475 million in cash to acquire Stratus Video, a provider of video language interpretation services for the healthcare industry.
“With over 65 million US residents ages five and older speaking a language other than English in the home, the need for medical interpretation in the healthcare system continues to grow,” said Amy Chang, healthcare analyst at Staffing Industry Analysts. “‘Meaningful access’ to healthcare ensures patients can make informed decisions about their health.”
The deal is expected to close this month and is subject to regulatory approvals and customary closing conditions, according to a filing with the US Securities and Exchange Commission. It will include the purchase of all issued and outstanding shares of Stratus Video capital stock from the company’s sole shareholder.
Based in Clearwater, Florida, Stratus Video was founded in 2012. It provides video remote, over-the-phone, and in-person interpretation for patients with limited English proficiency or hearing impairments. Stratus Video has a network of more than 3,000 interpreters and uses an on-shore/off-shore staffing model. It serves more than 1,600 healthcare clients among health systems, acute care hospitals, community health centers, federally qualified health centers, ambulatory surgery centers, and post-acute and home health providers.
Stratus Video posted 2019 revenue of more than $100 million.
Federal and many state regulations mandate that organizations provide qualified healthcare interpretation services. However, healthcare organizations often lack the resources to provide this service for themselves, according to AMN Healthcare CEO Susan Salka.
“This acquisition also helps further deliver on AMN’s commitment to help deliver quality, compassionate patient care, reduce complexity, increase efficiency and improve the patient and clinician experience,” Salka said.
AMN expects to fund the transaction through a combination of borrowings under its existing credit facility and cash on hand. It is expected to be immediately accretive to AMN’s adjusted earnings per share.
