CHNG - HealthStream to buy Change Healthcare's staff scheduling business for $67M

HealthStream (HSTM) has agreed to acquire Change Healthcare’s (CHNG) staff scheduling business, for ~$67.5M in cash thus expanding HealthStream’s staff scheduling and workforce management portfolio, which began in early 2020 with the acquisition of NurseGrid and ShiftWizard.The transaction is expected to complete by the end of this year and be accretive to the overall financial results of the Company on pro forma basis, excluding deferred revenue write-down.Approximately 90 employees will join HealthStream upon closing, and the acquired solutions will a part of  HealthStream’s Workforce Solutions business segment.The company expects a modest contribution to revenue in the next quarter while consolidated operating income will be negatively impacted by transaction expenses.For 2021,  HSTM expects incremental revenues between $16.5M-$19.5M, taking into account an estimated reduction of between $7M-$8M related to deferred revenue write-downs, while pro forma adjusted EBITDA is forecasted be between $3.2M-$4.5M.

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HealthStream to buy Change Healthcare’s staff scheduling business for $67M