AMN Healthcare Services, Inc., the nation’s leading innovator in healthcare talent solutions and staffing services, announced a definitive agreement to acquire Stratus Video for a purchase price of $475 million. The acquisition is expected to be immediately accretive to AMN’s adjusted earnings per share.
Stratus Video, based in Clearwater, Florida, is the leading provider of video remote language interpretation services for the healthcare industry. The company has grown rapidly since its founding in 2012, surpassing $100 million revenue in 2019. Based on fourth quarter 2019 results, Stratus’ twelve-month annualized run rate was approximately $119 million of revenue and $34 million of adjusted EBITDA.
“We are very excited to have the talented team at Stratus Video soon join the AMN family and expand our workforce solutions offerings with the addition of the nation’s leading healthcare remote video interpreting company,” said AMN Healthcare Chief Executive Officer Susan R. Salka. “This acquisition is the result of our continued efforts to positively impact patient care through innovative total talent solutions. We believe Stratus will add great value to our clients and their patients and will provide further opportunity for us to expand in the virtual workforce and patient care arena.
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“Qualified healthcare interpretation, which is mandated by federal and many state regulations, is a service that many healthcare organizations do not have the resources to provide for themselves. This acquisition also helps further deliver on AMN’s commitment to help deliver quality, compassionate patient care, reduce complexity, increase efficiency and improve the patient and clinician experience. Quality medical interpretation services delivered through a secure communications platform also aligns with AMN commitment to equality and inclusion by supporting greater access to care for limited-English proficient patients, deaf and hard of hearing individuals along with their families,” Ms. Salka added.
As the leading innovator in healthcare interpretation services, Stratus Video has developed proprietary technologies to seamlessly provide video remote interpretation, over-the-phone interpretation and in-person interpretation. Their cutting-edge technology platform enables real-time routing of video and audio calls, drives client efficiency with an in-person scheduling mobile application and powers interoperability with multiple telehealth platforms. Stratus employs a network of more than 3,000 interpreters with an on-shore/off-shore staffing model. Stratus serves more than 1,600 clients among health systems, acute care hospitals, community health centers, federally qualified health centers, ambulatory surgery centers, and post-acute and home health providers.
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The transaction is expected to be funded through a combination of borrowings under our existing credit facility and cash on hand. The acquisition, subject to regulatory approvals and customary closing conditions, is expected to close by early March 2020. The acquisition is expected to be immediately accretive to AMN’s adjusted earnings per share. The impact to GAAP earnings per share will depend in part on the annual amortization of intangibles assets, which has yet to be determined. Additional information regarding this transaction can be found in the Form 8-K filed in conjunction with this press release.
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