Cross Country Healthcare Inc. (NASDAQ: CCRN) announced it acquired Workforce Solutions Group Inc., a firm that works with local and national healthcare plans and managed care providers to coordinate in-home care services. It also provides home care staffing, RPO and contingent workforce evaluation. The deal closed Tuesday.
The purchase price was $25.0 million cash plus $5.0 million in shares of Cross Country stock subject to a net working capital adjustment. The deal also calls for earn-out payments that could provide up to an additional $15.0 million over the next three years, subject to performance.
“This acquisition allows us to expand our footprint into the home care business and participate in healthcare in a different way by serving in a critical role in caring for our aging population and others,” Cross Country co-founder and CEO Kevin Clark said.
Clark added he is particularly excited about the managed service offerings provided by Workforce Solutions Group. These services help healthcare facilities manage sourcing, recruiting and employing of healthcare professionals in residences or in the community outside of nursing homes.
“These offerings are akin to Cross Country’s managed service program services but in an adjacent space that we believe will continue to grow and enable seniors to remain independent in their own homes for as long as possible,” he said.
Workforce Solutions Group is based in Foothill Ranch, California.
“This partnership provides additional resources and support that will allow us to expand our industry leading services to more customers and accelerate our growth,” said Pamela Jung, founder and CEO of Workforce Solutions Group.
Cross Country also announced it has entered into a $100 million second lien term loan. The money is going towards the Workforce Solutions Group acquisition and to pay down an asset-based line of credit.