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Cross Country Healthcare Inc. (NASD: CCRN) struck a deal to acquire Medical Doctor Associates for $112.3 million in cash plus earn-out payments in 2008 and 2009.
MDA, based in Norcross GA, primarily provides locum tenens staffing but does some allied health staffing as well. It had 2007 revenue of $158 million. MDA is owned through an employee stock ownership plan.
The deal is expected to close in the third quarter, and will add to Cross Country's 2008 earnings by approximately two cents per diluted share.
MDA's management will remain with the company. Howard Goldman, director of investor and corporate relations for Cross Country, said plans are for the MDA brand to remain.
"This acquisition will combine our core nurse and allied staffing business with MDA's strong locum tenens business to enhance Cross Country's competitive position as a leading national provider of healthcare staffing solutions," said Cross Country President and CEO Joseph Boshart. "It will also provide potential revenue synergies with our Cejka Search retained physician search business."
Boca Raton FL-based Cross Country also said it entered into a $125.0 million five-year loan to pay for the acquisition and for general corporate purposes in addition to its $75.0 million revolving credit line.