On Assignment announces acquisition of HealthCare Partners

On Assignment, Inc. (NASDAQ: ASGN), a leading global provider of diversified professional staffing solutions, announced today that it has acquired HealthCare Partners, Inc. (HCP), a privately held locum tenens and physician staffing firm headquartered in Atlanta.

“HCP is one of the leading locum tenens companies in the country and is a perfect complement to our existing business, both from a geographic and staffing specialty perspective.”

According to the terms of the agreement, On Assignment will pay $15.0 million at closing with a two-year earn-out opportunity of up to $3.7 million. On Assignment utilized a combination of cash on hand and borrowing under its senior revolving credit facility to fund the acquisition. The company expects to achieve an after-tax savings of approximately $450,000 per year over the next 15 years as a result of the election to classify the HCP acquisition as an asset sale under Section 338 of the IRS tax code.

Recently named the twelfth fastest growing staffing firm in the United States by Staffing Industry Analysts, HCP generated approximately $20.0 million in 2010 revenues. The acquisition is expected to be immediately accretive to On Assignment's earnings.

"The acquisition of HCP will increase VISTA's size and the subspecialties it serves, and will bolster VISTA's presence in the southeast region of the United States," said Peter Dameris, president and CEO of On Assignment. "HCP is one of the leading locum tenens companies in the country and is a perfect complement to our existing business, both from a geographic and staffing specialty perspective."

Led by founders Ruddy and Rhonda Polhill, HCP has 41 employees and makes physician placements in 14 specialties across 24 states. The Polhills will remain with On Assignment and continue to lead the growth of HCP.

"On Assignment, and its physician staffing division VISTA, is widely regarded as one of the leading professional staffing companies in the nation," said Ruddy Polhill, founder and CEO of HCP. "Rhonda and I have known the senior management team at VISTA for many years, and we are excited to become part of On Assignment."

On Assignment will share additional details regarding the acquisition during its Q2 earnings conference call scheduled for 1:30 p.m. PDT on August 3.