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AMN acquires healthcare labor management firm

December 23, 2014

AMN Healthcare Services Inc. (NYSE: AHS), the largest US healthcare staffing firm, acquired Avantas, a provider of clinical labor management services. Omaha, Neb.-based Avantas provides workforce consulting, data analytics, predictive modeling and SaaS-based scheduling technology.

AMN acquired Avantas from Catholic Health Initiatives/Alegent Creighton Health. 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.

Avantas’ 2014 projected revenue is approximately $8 million, and the acquisition is expected to be neutral to AMN’s earnings in 2015 and accretive by 2016.

“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 AMN President and CEO Susan Salka. “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.”

AMN last week agreed to acquire Onward Healthcare, Locum Leaders and VMS provider Medefis from OGH LLC for a total purchase price of $82.5 million.