Kforce Inc. (NASD: KFRC) entered into a stock purchase agreement to sell all of the issued and outstanding shares of capital stock of Kforce Healthcare Inc. to RCM Acquisition Inc., an affiliate of Beecken Petty O'Keefe & Company, a Chicago-based private equity management firm focused on the healthcare industry.

The aggregate purchase price is $119.0 million in cash. The transaction is expected to close today.

Kforce Healthcare Inc. will be rebranded himagine solutions inc.

“As we assessed our investment strategy to simplify our business model and narrow our focus on our core businesses, we have decided to deepen our focus on our core technology and finance & accounting businesses, both in the commercial space and through Kforce Government Solutions, our unique government vertical,” said Kforce Chairman and CEO David L. Dunkel.

Kforce expects to use the proceeds from the transaction to repurchase shares and pay down debt, as well as potential acquisitions, Dunkel said.

Kforce ranks No. 15 on Staffing Industry Analysts’ 2014 list of largest U.S. staffing firms.

Note: This story has been corrected from a previous version.