The healthcare staffing market continues to consolidate as staffing solution companies look to expand their reach through M&A deals.
Digital staffing company Aya Healthcare plans to acquire Cross Country Healthcare for $18.61 per share in cash in a transaction valued at approximately $615 million.
The all-cash transaction represents a premium of 67% to Cross Country’s closing price Dec. 3, the companies announced Wednesday.
Aya said the two companies offer complementary, tech-enabled workforce solutions across the continuum of care. The proposed combination will diversify Aya’s coverage to include Cross Country’s clinical services in nonclinical settings, including schools and homes, in addition to travel nursing and allied health, per diem, permanent staff hiring, interim leadership, locum tenens and nonclinical professionals in all 50 states, according to a press release.
The company said clients will benefit by leveraging the full suite of technology, including a solution for vendor management, float pool technology, provider services and predictive analytics. The addition of Cross Country's capabilities will provide clinicians with greater flexibility and convenience by tapping into the combined pool of nationwide opportunities, the companies said.
Aya expects to complete the deal in the first half of 2025, subject to the approval of Cross Country stockholders and the satisfaction of other customary closing conditions, including regulatory approvals.
Cross Country shares were up 62% at $18.12 Wednesday afternoon.
Upon completion of the transaction, Cross Country will become a private company and its common stock will no longer trade on the Nasdaq.
Aya, based in San Diego, is the
Cross Country, based in Boca Raton, Florida, is a tech-enabled workforce solutions and advisory firm. Following the acquisition,
“By combining our strengths, resources and unwavering commitment to delivering best-in-class talent solutions, we are uniquely positioned to offer enhanced value to our healthcare systems, schools, clinicians and non-clinical professionals. Aya and Cross Country will operate as separate brands, supporting each other’s clients with increased access to candidates while expanding assignment opportunities for clinicians," said Alan Braynin, president and CEO at Aya, said in a statement.
"This compelling all-cash transaction will deliver significant and immediate value to our stockholders. Importantly, it will also enhance and expand services and solutions for our clients, provide a wider array of opportunities and efficiencies for our healthcare clinicians and create new opportunities for our employees as part of an industry leader with a complementary footprint and offering," Martins said.
Both Aya and Cross Country have pursued M&A deals to grow their businesses as acquisitions enable staffing firms to pool resources, expand their client bases and increase their geographical footprint. The need for qualified healthcare professionals including nurses, doctors and allied health workers continues to grow in parallel with the rising demand of healthcare services, driven by an aging population and an increasing shortage of nurses in the U.S.
A year ago, Aya bought data-science-driven recruiting solution Winnow AI to bolster its physician recruitment capabilities. That acquisition marked Aya's third M&A deal in five months as the company worked to build up its AI capabilities for staffing, hiring and retention.
In June 2023, Aya picked up Flexwise Health, a company that offers technology to forecast gaps in patient demand and staffing levels. A month later, in July, the company acquired Polaris AI, a machine learning platform that predicts future patient volume and staffing levels in clinical settings.
In 2022, Cross Country acquired Mint Medical Physician Staffing and Lotus Medical Staffing to build its locum tenens platform. Also in 2022, the company bought interim leadership firm Hireup Leadership to strengthen its position in the talent management landscape.
Last year, healthcare talent solutions provider AMN Healthcare acquired MSDR, a staffing firm specializing in the recruitment of radiologists and other providers, for $300 million.
Procopio, Cory, Hargreaves & Savitch LLP is serving as legal adviser to Aya. BofA Securities Inc. is serving as financial adviser, and Davis Polk & Wardwell LLP is serving as legal adviser to Cross Country.