Knox Lane Completes Acquisition of Cross Country Healthcare
Key Transaction Highlights and Shareholder Considerations
Acquisition Overview
Knox Lane, a San Francisco-based growth-oriented investment firm, has officially completed its acquisition of Cross Country Healthcare, Inc., a leading technology-enabled healthcare workforce solutions company. This transaction marks a significant change in ownership structure, as Cross Country Healthcare transitions from a public entity to a privately held company.
Leadership Transition
As part of the acquisition, Joel Tremblay has been appointed as the new Chief Executive Officer of Cross Country Healthcare. Tremblay brings nearly two decades of experience in the healthcare workforce solutions industry, most recently serving as President of Medical Solutions, where he was instrumental in scaling one of the nation’s largest clinical staffing organizations.
Kevin C. Clark, the Co-Founder, Chief Executive Officer, and Chairman of the Board, will retire from his leadership roles. Clark will remain involved to ensure a seamless transition, providing continuity and stability during this pivotal period.
Strategic Direction and Growth Opportunities
The acquisition allows Cross Country Healthcare to return to private ownership, empowering the company to focus on long-term growth and innovation with fewer constraints than those imposed by public markets. Tremblay highlighted the unique market position of Cross Country Healthcare, citing its trusted brand, leading presence, and differentiated platform as key assets. As a private company, Cross Country Healthcare intends to accelerate investments in innovation, strengthen capabilities, and deliver enhanced value to clients, healthcare professionals, and the communities it serves.
Knox Lane, with its investor-operator mindset, plans to support Cross Country Healthcare across areas including human capital, brand management, AI and digital transformation, sourcing, supply chain, logistics, strategic acquisitions, and business development. This partnership is expected to drive operational excellence and expand the company’s market reach.
Divisional Changes
Notably, Cross Country Healthcare’s locums division has been acquired by All Star Healthcare Solutions, another portfolio company of Knox Lane. This strategic move is likely to streamline Cross Country Healthcare’s operations and sharpen its focus on core workforce solutions, while potentially enhancing shareholder value through improved efficiency and specialization.
Advisors and Process Details
- BofA Securities, Inc. served as the exclusive financial advisor to Cross Country Healthcare and provided a fairness opinion to the Board of Directors.
- Davis Polk & Wardwell LLP acted as legal counsel to Cross Country Healthcare.
- MTS Health Partners was the exclusive financial advisor to Knox Lane, with Kirkland & Ellis LLP serving as legal counsel.
About Cross Country Healthcare
Cross Country Healthcare is a technology-driven workforce solutions provider, supporting health systems across nursing, allied health, and nonclinical lines. Its flagship workforce intelligence platform, Intellify, offers healthcare leaders enhanced visibility into workforce spend, supplier performance, labor demand, and operational execution. These capabilities are designed to support faster decision-making and improved workforce outcomes.
About Knox Lane
Knox Lane is a growth-oriented investment firm with a proven track record of partnering with industry leaders to accelerate growth. The firm provides strategic support in areas critical to scaling and transforming companies within their portfolio.
Shareholder Considerations & Potential Price Sensitivity
- Change of Ownership: The transition to private ownership will result in Cross Country Healthcare being delisted from public exchanges. Shareholders should be aware of implications for their holdings, as shares will no longer be traded publicly.
- Leadership Change: The appointment of Joel Tremblay as CEO, given his extensive industry experience, may signal new strategic direction and operational priorities.
- Divisional Sale: The sale of the locums division to All Star Healthcare Solutions could affect the company’s revenue mix and operational focus.
- Strategic Investment: Knox Lane’s commitment to invest in technology and innovation could enhance long-term value, but may also entail near-term restructuring or capital allocation changes.
Potential Impact on Share Value
The acquisition, leadership transition, and divisional sale are all material events that could significantly impact share value and investor returns. The transition to private ownership means that public shareholders may be bought out, and future value creation will be realized by private investors. Investors should monitor communications from Cross Country Healthcare and Knox Lane for details on buyout terms and the company’s future strategic direction.
Media Contacts
- Knox Lane: Erik Carlson / Woomi Yun, Joele Frank, Wilkinson Brimmer Katcher (212-355-4449)
- Cross Country/Intellify: Karen Varga-Sinka ([email protected])
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with their financial advisors before making any investment decisions.
