Thursday after hours, HealthStream, Inc. HSTM announced the acquisition of Performance Management Services, Inc (PMSI). According to a research note from Canaccord Genuity, PMSI is a California based supplier of competency-based employee development solutions for nurses.
While this is a relatively small acquisition, it adds to HealthStream’s Workforce Development segment and also should help to complement existing offerings.
Here are a few pieces of notable info regarding the deal:
- HealthStream will pay $4 million in cash with a possible $500,000 to be paid out in addition in the form of contingent consideration. HealthStream has yet to offer updated guidance for revenue or earnings reflective of the deal.
- PMSI’s main offering is the Performance Based Development System, a clinical assessment tool for nurses. It assists hospital educators in assessing clinical judgment abilities, especially important for inexperienced nurses.
Canaccord did not change their valuation based of HealthStream based on this acquisition, but may update its view following the reporting of the company’s earnings.
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