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news.Cross Country Healthcare has entered into a definitive agreement to acquire substantially all of the assets of privately-held MDA Holdings and its subsidiaries for $112.3 million in cash, plus additional earn-out payments based on 2008 and 2009 performance criteria.
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The transaction is subject to certain approvals and closing conditions. The company anticipates closing this transaction by the end of the third quarter of 2008.
In conjunction with this transaction, Cross Country Healthcare entered into a fully underwritten $200 million financing commitment with Wachovia Capital Markets and certain of its affiliates and Banc of America Securities.
Pursuant to this commitment, the company will amend and keep in place its existing $75 million revolving credit facility and also enter into a $125 million five-year term loan, from which the proceeds will be used to finance the acquisition and for general corporate purposes.
Joseph Boshart, president and CEO of Cross Country Healthcare, said: “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. It will also provide potential revenue synergies with our Cejka Search retained physician search business.”