Healthcare Staffing Report: Jan. 8, 2015

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General Employment acquires Scribe Solutions

General Employment Enterprises Inc. (NYSE MKT: JOB), an Oakbrook Terrace, Ill.-based staffing firm, agreed to acquire Scribe Solutions Inc., a provider of clinical information managers (medical scribes) for emergency departments.

Scribe Chairman and CEO Derek Dewan will also take over the chairman and CEO roles at General Employment. Dewan at one time served as chairman and CEO of MPS Group Inc., which was acquired by Adecco in 2010 for $1.3 billion.

General Employement current CEO, Andrew Norstrud, will remain with the firm as CFO.

General Employment will issue Series A convertible preferred stock of the company in exchange for all of Scribe Solutions’ common stock. The exchange ratio is based on Scribe having a value between $6.4 million and $7.9 million. The deal is expected to occur during the first quarter of 2015.

Mary Claire Menze, who founded Scribe Solutions in 2008, will assume her previous role as president of Scribe.

“The acquisition of Scribe brings to General Employment sustained profitability, one of the best CEOs in the industry and entry into the growing healthcare staffing market,” said Norstrud. “With the addition of Derek’s expertise, we will accelerate our efforts to build out the company’s service offerings in the professional and other staffing segments. In particular, I am excited about the company's entry into the higher margin and fast growing healthcare staffing market.”