On Assignment Acquires HealthCare Partners

Physician Staffing Firm to Become Part of VISTA Staffing Solutions, a Division of On Assignment

CALABASAS, Calif. & SALT LAKE CITY--()--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.

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.

About On Assignment

On Assignment, Inc. (NASDAQ: ASGN) is a leading global provider of highly skilled, hard-to-find professionals in the growing life sciences, healthcare, and technology sectors, where quality people are the key to success. The company goes beyond matching résumés with job descriptions to match people they know into positions they understand for temporary, contract-to-hire, and direct hire assignments. On Assignment was founded in 1985 and went public in 1992. The corporate headquarters is located in Calabasas, California, with a network of approximately 80 branch offices throughout the United States, Canada, United Kingdom, Netherlands, Ireland, Belgium, and China. Additionally, physician placements are made in Australia and New Zealand. To learn more visit: www.onassignment.com.

About VISTA Staffing Solutions

VISTA Staffing Solutions, a division of On Assignment, Inc., is a leading provider of locum tenens physician staffing and permanent physician search services. Founded in 1990, the company helps hospitals, medical practices, and government agencies solve their physician staffing challenges. VISTA is the only agency that offers short- and long-term domestic jobs, international work opportunities, and permanent placement for physicians. The company is a founding member of the National Association of Locum Tenens Organizations (NALTO).

Physicians can visit VISTA’s website for more information about U.S. locum tenens, extended placements, international locum tenens, and permanent physician jobs.

Healthcare facilities can visit VISTA’s website for more information about U.S. locum tenens staffing, extended placements, international placements, and physician search and consulting services. For more information please visit: www.vistastaff.com.

About HealthCare Partners

HealthCare Partners was founded in 1996 by Ruddy and Rhonda Polhill. HCP is one of the leading physician staffing companies in the country and makes placements in 14 specialties across 24 states. Ruddy Polhill served as President of the Board of Directors for the National Association of Locum Tenens Organizations (NALTO). For more information, please visit: www.hcpstaffing.com.

Contacts

On Assignment, Inc.
Jim Brill
SVP, Finance and Chief Financial Officer
818-878-7900
Jim.Brill@onassignment.com

Release Summary

On Assignment, Inc. acquires company.

Contacts

On Assignment, Inc.
Jim Brill
SVP, Finance and Chief Financial Officer
818-878-7900
Jim.Brill@onassignment.com