Medfinders ranked as the seventh-largest healthcare staffing firm, according to Staffing Industry Analysts' new 2010 list of largest U.S. healthcare staffing firms. AMN ranked as the largest healthcare staffing firm.

Under the deal, AMN will provide 6.3 million shares of common stock and 5.7 million shares of preferred stock for all of Medfinders. The deal is valued at approximately $220 million (including approximately $132 million of Medfinders' indebtedness to be refinanced).

The deal is expected to close in the third quarter. When the deal goes through, and if the preferred stock is converted into common stock, Medfinders shareholders will own approximately 26% of AMN.

The acquisition will be accretive to full year earnings in 2011.

Medfinders provides staffing travel nurses, allied healthcare professionals and locum tenens as well as physician search services and home healthcare services. It also provides local nurse and allied staffing.

"Bringing together the experience and diverse capabilities of both companies in healthcare staffing and managed services will create significant short and long-term benefits for our clients," said Susan Nowakowski, President and CEO of AMN. "This is a strategic opportunity for two leaders in healthcare staffing to come together to achieve additional sales and operating efficiencies while immediately enhancing and expanding our service offerings."

"This is an ideal combination for our clients, healthcare professionals, and team members," said Bob Livonius, CEO of Medfinders. "As an integrated and increasingly diverse company, we will be even more effective and efficient in delivering high quality and innovative workforce management solutions to our clients across the full spectrum of clinical specialties and services."