Cross Country Healthcare, Inc. (CCRN) announced that it has terminated its merger agreement with Aya Holdings II Inc. and its subsidiary Spark Merger Sub One Inc. The termination became effective on December 4 2025, the day the company received a $20 million fee from Aya Healthcare, Inc. as stipulated in the contract.
The decision to end the deal was driven by an extended Hart‑Scott‑Rodino (HSR) waiting period. A 43‑day federal government shutdown pushed the HSR deadline to December 30, 2025—well after the agreement’s original termination date of December 3. Despite efforts to accelerate the FTC review, the regulatory process could not be shortened, leaving CCRN with no viable path to close the transaction before the deadline.
Cross Country Healthcare will remain an independent, publicly traded company. It has no debt and a robust cash position, and it has already begun a share‑repurchase program under its existing $40 million authorization. The termination fee provides a modest financial cushion as the company realigns its strategy toward organic growth and potential new partnerships.
In its most recent quarterly report, CCRN posted revenue of $250.05 million, missing the consensus estimate of $270.72 million—a shortfall of roughly 7.5%. Earnings per share were $0.03 versus the expected $0.04, a miss of about 25%. Segment data show Nurse and Allied Staffing revenue at $202 million, down 24% year‑over‑year, while Physician Staffing revenue was $48.1 million, a 4% decline. Homecare Staffing, however, grew 29% YoY, contributing to the company’s strongest segment performance in recent quarters.
CEO John A. Martins emphasized that the company remains well‑positioned to execute its strategic plan. He highlighted operational resilience, a diversified service mix across the continuum of care, and a strong cash position with no debt. Martins noted that the termination of the merger, while disappointing, has clarified the company’s path forward and reinforced its focus on delivering long‑term value to shareholders.
Investor sentiment has turned cautious following the announcement. Analysts have pointed to the loss of anticipated synergies and the recent revenue and earnings misses as key concerns, while also acknowledging the company’s solid balance sheet and ongoing share‑repurchase program. Management is concentrating on organic growth, particularly in the high‑growth homecare segment, and is open to exploring new strategic partnerships that can complement its core services.
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