Monday, January 19, 2015 5:00 pm MST
GREENWOOD VILLAGE, Colo.-- Envision Healthcare Holdings, Inc. (NYSE: EVHC) (Envision) announced that it has entered into an agreement to acquire VISTA Staffing Solutions (VISTA) from On Assignment, Inc. (On Assignment) (NYSE: ASGN). The deal is expected to add approximately $135 million in annual net revenues.
VISTA is a leading provider of locum tenens staffing and permanent placement services for physicians, nurse practitioners and physician assistants. They offer locum tenens staffing, extended assignments, international placements and physician search and consulting services to hospitals, medical practices and government agencies.
“We staff thousands of clinicians each year so joining forces with the very talented team of one of the largest locum tenens physician staffing firms in the nation was a logical move,” said William A. Sanger, chairman, president and chief executive officer of Envision. “We are dedicated to being pioneers in each area of healthcare we operate and that includes the staffing of our workforce. VISTA’s business practices and systems will be key differentiators for us as we develop a comprehensive multi-specialty staffing practice for all levels of clinicians.”
"We were approached by Envision, one of the largest and most respected healthcare companies in the industry, to acquire VISTA Staffing Solutions and determined that this would greatly benefit both organizations, our employees and our shareholders,” said Peter Dameris, president and chief executive officer of On Assignment. "This is an incredible opportunity for VISTA to align with a world class healthcare organization and for On Assignment to focus more specifically on high demand IT, math and science skill sets.”
The acquisition is expected to close in February pending completion of certain closing conditions.
About Envision Healthcare Holdings, Inc.
Envision Healthcare Holdings, Inc., and its more than 34,000 employees and affiliated clinicians, offers an array of healthcare related services to consumers, hospitals, healthcare systems, health plans and local, state and national government entities. Through Envision Healthcare Corporation, the Company operates American Medical Response, Inc. (AMR), EmCare Holdings, Inc. (EmCare) and Evolution Health, LLC (Evolution Health). AMR is a provider and manager of community-based medical transportation services, including emergency (‘911’), non-emergency, managed transportation, fixed-wing air ambulance and disaster response. EmCare is a provider of integrated facility-based physician services, including emergency, anesthesiology, hospitalist/inpatient care, radiology, tele-radiology and surgery. Evolution Health provides comprehensive care to patients across various settings, many of whom suffer from advanced illnesses and chronic diseases. Envision is headquartered in Greenwood Village, Colorado.
Forward-Looking Statements
Certain statements and information herein may be deemed to be “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, and all statements (other than statements of historical facts) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future, including EVHC’s ability to successfully complete the acquisition of VISTA and VISTA’s estimated $135 million in annualized net revenues. Any forward-looking statements or guidance herein are made as of the date of this press release, and EVHC undertakes no duty to update or revise any such statements. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in EVHC’s filings with the U.S. Securities and Exchange Commission from time to time, including in the section entitled “Risk Factors” in EVHC’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Among the factors that could cause future results to differ materially from those provided in this press release are: decreases in our revenue and profit margin under our fee-for-service contracts due to changes in volume, payor mix and third party reimbursement rates, including from political discord in the federal budgeting process; the loss of existing contracts; failure to accurately assess costs under new contracts; difficulties in our ability to recruit and retain qualified physicians and other healthcare professionals, and enforce our non-compete agreements with our physicians; failure to implement some or all of our business strategies, including our efforts to grow our Evolution Health business and cross-sell our services; lawsuits for which we are not fully reserved; the adequacy of our insurance coverage and insurance reserves; our ability to successfully integrate strategic acquisitions; the high level of competition in the markets we serve; the cost of capital expenditures to maintain and upgrade our vehicle fleet and medical equipment; the loss of one or more members of our senior management team; our ability to maintain or implement complex information systems; disruptions in disaster recovery systems or management continuity planning; our ability to adequately protect our intellectual property and other proprietary rights or to defend against intellectual property infringement claims; challenges by tax authorities on our treatment of certain physicians as independent contractors; the impact of labor union representation; the impact of fluctuations in results due to our national contract with FEMA; potential penalties or changes to our operations, including our ability to collect accounts receivable, if we fail to comply with extensive and complex government regulation of our industry; the impact of changes in the healthcare industry, including changes due to healthcare reform; our ability to timely enroll our providers in the Medicare program; our ability to restructure our operations to comply with future changes in government regulation; the outcome of government investigations of certain of our business practices; our ability to comply with the terms of our settlement agreements with the government; our ability to generate cash flow to service our substantial debt obligations; the significant influence of investment funds sponsored by, or affiliated with, Clayton, Dubilier & Rice, LLC over us; and the other factors discussed in EVHC’s filings with the Securities and Exchange Commission.
