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Update: Envision Healthcare - EmCare Completes Acquisition Of VISTA Staffing Solutions

Envision Healthcare Holdings (EVHC) recently filed a form 8-K consummating its acquisition of VISTA Staffing Solutions, Inc. for $123 million in cash from On Assignment (ASGN). VISTA Staffing Solutions is a leading provider of physician contract staffing and permanent placement services for physicians, nurse practitioners, and physician assistants to hospitals, medical practices, and government agencies. We view the acquisition favorably and expect VISTA to boost Envision Healthcare's annual net revenues by about $135 million.

Prior to the acquisition, Envision had about $240 million of cash and cash equivalents on its balance sheet, so there was a growing need to deploy capital. As we noted in our initiating article, Envision Healthcare should drive a high percentage of its 2015 growth through acquisitions. Hence, we think that the VISTA acquisition is a great start given the cheap source of funding and VISTA's future role in broadening EmCare's multi-specialty staffing practice.

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