Huron Consulting Group made its largest acquisition with a $219 million deal that underscores healthcares importance to the Chicago firms accelerating growth.
The dealfor $169 million in cash and $50 million in stockadds rival healthcare financial advisers Stockamp & Associates, Lake Oswego, Ore., to Hurons two other recent healthcare acquisitions: Aegis Advisers and Wellspring Partners, a pair of 2007 deals that increased the companys then $8 million to $10 million healthcare revenue by at least $55 million.
Gary Holdren, Hurons chairman, president and chief executive officer, told analysts in a conference call that the publicly traded company sought to maintain its growth by aggressive hiring or buying another practice. Stockamp, which specializes in financial consulting for childrens hospitals, academic medical centers and profitable health systems, will add 15 managing directors to 50 already working in Hurons health and education arm, he said.
Huron will continue to build its healthcare practice in the coming year, but it likely wont involve any more deals. In the near term, our capital is going to be used in either the health and education or the legal consulting practice, Holdren told analysts. This is a pretty big acquisition for us, and weve had our eye on this one pretty much full time. Were looking at some other small things anything except something real small, this probably clears up our plate for the next 12 months.
Holdren argued that Hurons capital will allow the acquired firms to hire and grow rapidly. Both of these businesses right now are drastically resource-constrained, he said.
Huron, which borrowed $164 million to finance the deal, reported profits of $41.9 million on revenue of $504.3 million last year, according to the companys annual report. Stockamp, which was privately held, reported revenue of $94 million for the year that ended March 31, Huron said.
Paul Kohlheim, Stockamps president, has been named a Huron vice president and will report to David Shade, also a Huron vice president who oversees the companys healthcare practice. Dale Stockamp, who founded Stockamp & Associates, will join Huron as a consultant.