Aya Healthcare, the largest healthcare staffing company in the United States, has agreed to acquire Cross Country Healthcare (NASDAQ: CCRN) in an all-cash deal for USD$18.61 per share, and a total of USD$615 million.
Originally announced on Wednesday, the deal represents a 67 per cent premium to Cross Country’s closing price on December 3, 2024.
This acquisition news has led to a bullish sentiment among investors, causing the stock to surge as the offer price significantly exceeds the current market value. The all-cash nature of the transaction typically reassures shareholders, providing a clear exit strategy at a premium, which often results in immediate stock price increases.
The acquisition also expands Aya Healthcare’s capabilities in client service and delivery, leveraging Cross Country Healthcare’s nearly 40-year history of clinical excellence and quality.
“We are excited to join forces with Cross Country and, together, bring more innovative solutions and exceptional service across the industry,” said Alan Braynin, president and Chief Executive Officer of Aya.
“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.”
Braynin continued in saying that Aya and Cross Country will operate as separate brands working in tandem to support each others clients with increased access to candidates while expanding assignment opportunities for clinicians.
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Cross Country board unanimously approve merger agreement
This move is seen as strategic in the context of the healthcare staffing industry, particularly at a time when the demand for travel nursing and other healthcare staffing solutions might be at a low point, making it an opportune moment for consolidation and expansion.
Aya expects to complete the transaction in the first half of 2025, pending approval from Cross Country stockholders and the fulfillment of customary closing conditions, including regulatory approvals. Additionally, financing is not a condition for the transaction.
The Cross Country Board of Directors unanimously approved the merger agreement. Furthermore, the merger significantly reshapes the healthcare staffing landscape by enhancing the combined entity’s market positioning.
The merger expands service offerings across both clinical and non-clinical settings, improves technological infrastructure for workforce management, and increases geographical coverage with deeper market penetration.
The deal addresses the growing challenges in healthcare staffing and could create cost efficiencies through shared resources and technology integration. Additionally, the companies intend to maintain seperate brands. This will help them strategically aim to preserve existing client relationships while leveraging cross-selling opportunities.
After the transaction closes, Cross Country will operate as a private company, and its common stock will cease trading on the NASDAQ. Aya plans to maintain a strong presence in Boca Raton, FL.
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