SAN DIEGO & BOCA RATON, Fla. - Aya Healthcare and Cross Country Healthcare (NASDAQ:CCRN) have announced a definitive agreement for Aya to acquire Cross Country in an all-cash transaction valued at approximately $615 million. Cross Country stockholders are set to receive $18.61 per share, which indicates a 67 percent premium over Cross Country's closing price on December 3, 2024.
The acquisition will merge Aya's healthcare talent software and staffing services with Cross Country's nearly 40 years of clinical service, expanding Aya's coverage to include Cross Country's work in non-clinical settings. Cross Country brings substantial operational strength to the deal, with InvestingPro data showing annual revenue of $1.45 billion and a strong financial health score of 3.23 (GREAT). The combined entity aims to offer a wider range of opportunities and competitive compensation for healthcare professionals, improving client service delivery and patient care outcomes.
Aya and Cross Country will continue to operate under their respective brands after the transaction, with the goal of leveraging each other's strengths to provide enhanced services. The merger is expected to create immediate value for Cross Country stockholders, offering them a significant premium on their shares.
Cross Country's Board of Directors has unanimously approved the merger agreement and will recommend that stockholders vote in favor of the transaction at an upcoming Special Meeting. The transaction is anticipated to close in the first half of 2025, subject to stockholder approval and customary closing conditions, including regulatory approvals.
Upon completion, Cross Country will become a privately held company, and its common stock will be delisted from the NASDAQ. The company's strong liquidity position, with a current ratio of 2.79 and minimal debt levels, should provide a solid foundation for the transition. Aya plans to maintain a significant presence in Boca Raton, Florida, where Cross Country is headquartered. For detailed analysis of over 1,400 stocks like Cross Country Healthcare, investors can access comprehensive Pro Research Reports through InvestingPro.
Legal advisory for the transaction is being provided by Procopio, Cory, Hargreaves (LON:HRGV) & Savitch LLP for Aya Healthcare, while BofA Securities, Inc. and Davis Polk & Wardwell LLP are advising Cross Country Healthcare.
The merger is expected to combine Aya's AI-enabled software solutions with Cross Country's workforce solutions to tackle labor challenges in healthcare and improve efficiency through technology.
This news is based on a press release statement from both companies involved in the agreement.
In other recent news, Cross Country Healthcare, Inc. disclosed its third quarter 2024 financial results, while also providing an outlook for the fourth quarter. The company's leadership, including President and CEO John Martins and CFO Bill Burns, led the earnings call, discussing both the company's performance and future expectations. The company was optimistic about its performance in the third quarter, although it acknowledged that forward-looking statements are subject to various risks and uncertainties.
Cross Country Healthcare did not provide explicit details on any areas where it fell short of expectations in the third quarter. During the call, a question and answer session took place, however, specific details of these discussions were not provided in the summary. Analysts and investors were encouraged to access the audio replay for a comprehensive understanding of the discussions. The company's earnings press release is available on their website, which includes additional forward-looking statements. These recent developments provide an insight into the company's financial health and future expectations.
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