AMN Healthcare Services Inc. (NYSE: AMN), one of the largest US healthcare staffing firms, agreed to acquire healthcare staffing and locum tenens provider MSDR.
MSDR comprises two healthcare staffing companies specializing in locum tenens and advanced practices: New Jersey-based Medical Search International and Atlanta-based DRW Healthcare Staffing. Founded in 2002, MSI serves healthcare systems by providing healthcare professionals in psychiatry, anesthesia, radiology and surgery, while DRW, founded in 2011, specializes in psychiatry, anesthesia and surgery.
The transaction is valued at $300 million; it is expected to close this quarter and be funded with a combination of cash on hand and borrowings.
“We are very excited to welcome the MSDR team into the AMN Healthcare family and expand the workforce solutions available to our clients across the country,” AMN Healthcare President and CEO Cary Grace said in a press statement. “Now more than ever, it is critically important that healthcare systems have streamlined access to the services, technologies and healthcare professionals needed to support the patients and communities they serve.”
The deal expands the Dallas-based healthcare staffing provider’s revenue growth in locum tenens, according to AMN Healthcare.
MSDR revenue was $104 million in 2022, and year-to-date annualized 2023 revenue is approximately $155 million. Plans call for Chris Wang, CEO and managing partner of DRW, to remain with the business as president of MSDR.