Nurse staffing agency AMN Healthcare Services, San Diego, agreed to buy physician staffing firm MHA Group, Irving, Texas, for about $120 million in cash and $40 million in stock. The deal includes an additional payment of $35 million to $52 million based on MHA's performance from August through the end of 2005. AMN earned $17.3 million on revenue of $629 million in 2004. Financial information on privately held MHA was unavailable. The combined company would have about $889 million in pro forma revenue for the year ended June 30, AMN said. AMN will borrow $280 million to help fund the deal, refinance debt and supply working capital. It will own 91% of the merged company, with the remainder owned by MHA founders James Merritt and Joseph Hawkins and MHA management. The deal is expected to close in November. -- by Melanie Evans
Healthcare staffing firms AMN, MHA agree to merge
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