Healthcare Staffing Report: Feb. 11, 2016

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M&A volume up in 2015, led by IT, healthcare

2015 was a busy year for M&A activity in the staffing industry. According to Staffing Industry Analysts' annual report on staffing firm mergers and acquisitions, we recorded 92 announced transactions in North America over the course of the year – 22 more than 2014 and the most deals in a single year since 2007 (126). Healthcare staffing firms were the second most-acquired target in 2015, accounting for roughly a quarter of all reported transactions (22 of 92 acquisitions). AMN Healthcare (NYSE: AHS) and TeamHealth Holdings (NYSE: TMH) were particularly acquisitive, with five and four staffing acquisitions in 2015, respectively, plus one additional staffing-related acquisition apiece. Private equity firms were also active, with four such firms acquiring or initiating a majority investment in a healthcare staffing firm.

Notable acquisitions by healthcare staffing firms in 2015 include TeamHealth’s acquisition of physician group IPC Healthcare for $1.6 billion, AMN Healthcare’s acquisition of healthcare executive search firm B.E. Smith for $160 million, Envision Healthcare’s acquisition of Vista Staffing Solutions from On Assignment for $123 million, and Cross Country Healthcare’s (NASDAQ: CCRN) acquisition of school-based staffing firm Mediscan for $33 million plus an earn-out of up to $7 million.

The report also tracks inter-regional transactions, meaning those involving one firm based in North America and a counterparty based outside North America. Of the 20 inter-regional transactions, two were related to healthcare staffing – US-based workforce solutions provider Medassets (including its vendor management system) was acquired by Pamplona Capital Management while US-based pharmaceutical staffing firm PS was acquired by Empresaria.

Corporate members can read the full report and find out who is buying healthcare staffing firms here.