AMN Healthcare acquires Avantas
Avantas provides services and technology tools that help clients optimize and plan their clinical workforce to cost-effectively handle patient demand. Their enterprise labor management methodology includes best practice consulting services and the nation's leading technology-enabled predictive workforce modeling to enable more effective labor planning.
Avantas received the highest rating for a staff scheduling company in its category by KLAS, a leading healthcare industry research firm, which also identified Avantas as "the most promising human capital niche/focused vendor for staff scheduling" based on its Smart Square® technology. Avantas is based in Omaha, Nebraska and will retain its brand, location and leadership.
"With labor representing more than half of costs at healthcare facilities, providers are in great need of accurate, dependable analytics and information to make critical forecasting and staffing decisions," said Susan Salka, President and Chief Executive Officer of AMN Healthcare.
"Both AMN and Avantas have been focused on providing workforce solutions that enable the quality of care, cost savings, efficiency, and business insight needed by our clients today. By bringing Avantas into the AMN portfolio of services, our clients will benefit from best-practice strategies, resource management expertise, innovative technologies, and access to clinical labor that is unrivaled in the industry."
Chris Fox, CEO of Avantas, added, "For our current clients, this is a terrific opportunity to leverage the strengths of two best-in-industry companies. Together, we can provide a level of workforce predictability integrated with expert workforce and staffing solutions that has never before been achieved in healthcare. Avantas is devoted to serving the healthcare industry, and we are excited to expand our reach and add to the value AMN already provides its clients."
The purchase price includes an initial payment of $16.5 million, with an earn-out potential of up to $8.5 million based on future operating performance. The acquisition was funded out of cash on hand and borrowings under the Company's existing revolving credit facility. The 2014 projected revenue of Avantas is approximately $8 million, and the acquisition is expected to be neutral to AMN's earnings in 2015 and accretive by 2016. Avantas was acquired from Catholic Health Initiatives/Alegent Creighton Health. Further information regarding this acquisition will be provided during AMN's fourth quarter 2014 earnings call to be held in February 2015.