In December 2024, Aya Healthcare announced plans to go through with an acquisition of Cross Country Healthcare (Nasdaq: CCRN) in an all-cash deal valued at $615 million, or $18.61 per share. This represented a 67% premium over Cross Country’s pre-announcement closing price of $11.16.
The announcement initially lifted CCRN’s stock price, but in the months since, it has softened—reflecting ongoing skepticism about whether the deal will ultimately be completed.
Why the Skepticism?
While Cross Country shareholders gave unanimous approval, some uncertainty remains due to the Federal Trade Commission (FTC) review process.
“Our company participated in the FTC’s first-round interviews as a technology partner with Aya. The questions were straightforward, concluding with my perspective on how the merger might impact hospital pricing. Given the complexity of the staffing marketplace and the many variables at play in supply-and-demand dynamics, I declined to give a definitive answer.”
Tim Teague, President of BlueSky Medical Staffing Suite
Regulatory Process: Second Request
The FTC has since issued a second request for information, extending its investigation. This is typical for a transaction of this size and should not be taken as a sign of major trouble.
Both Aya and Cross Country appear committed to moving forward despite the delay. In a worst-case scenario, the FTC could require a divestiture—the sale of one or more business lines from either company—to address any competition concerns.
Market Share Perspective
It’s important to note that the combined market share of Aya and Cross Country would still be well below thresholds that typically trigger serious antitrust action. For this reason, the transaction is heavily favored to gain approval.
Projected Timeline
Assuming regulatory clearance, the deal is expected to close in Q4 2025. Until then, the companies will continue operating independently.
Key Takeaways
- Purchase Price: $615 million, 67% premium over pre-deal price.
- Regulatory Status: FTC second request in progress, common for large mergers.
- Risk Level: Low to moderate; divestitures possible but unlikely to derail the deal.
- Expected Closing: Q4 2025.
Bottom line: Despite temporary market skepticism and the natural delays of regulatory review, the fundamentals of the Aya Healthcare acquisition of Cross Country Healthcare suggest a strong likelihood of completion—bringing together two major players in healthcare staffing under the Aya banner.