AMN Healthcare Acquires MSDR For $300M, Expanding Locum Tenens Potential And Bolstering Talent Pool

AMN Healthcare Services Inc AMN, a total talent solutions provider for healthcare organizations, has agreed to acquire MSDR for $300 million.

MSDR consists of two healthcare staffing companies that specialize in locum tenens and advanced practices, Medical Search International (MSI) and DRW Healthcare Staffing (DRW).

MSI, established in 2002, places healthcare professionals in psychiatry, anesthesia, radiology, and surgery within U.S. healthcare systems. DRW, founded in 2011, specializes in psychiatry, anesthesia, and surgery. Chris Wang, DRW's CEO and Managing Partner, will remain with the business as President of MSDR.

This acquisition significantly enhances AMN Healthcare's potential locum tenens revenue. MSDR reported $104 million in revenue for 2022, with year-to-date annualized 2023 revenue of approximately $155 million. 

The company expects the deal to be modestly accretive to adjusted EPS in the first twelve months.

The transaction is funded through a combination of available cash and borrowings from the revolving credit facility, with the anticipated closing in the fourth quarter of 2023.

As of June 30, 2023, AMN held $7 million in cash and equivalents.

The acquisition of MSDR expands AMN Healthcare's candidate pool for high-demand services and capitalizes on MSDR's recruitment expertise and candidate matching technology for locum tenens.

Price Action: AMN shares are trading higher by 0.09% at $73.82 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was Reviewed And Published By Benzinga Editors.