Huron buys Stockamp & Associates for $219M

Huron Consulting Group Inc., which provides financial and operational advice to businesses, said Tuesday it acquired Stockamp & Associates Inc., a hospital and health systems consultant, for $219 million in cash and stock.

Huron paid $169 million in cash and $50 million in stock. Additional payments could be made if some financial targets are met.

Huron said the acquisition of Portland, Ore.-based Stockamp will allow it to add to its offerings in the hospital consulting space, with a particular focus on academic medical centers.

Huron said the deal will hurt earnings in 2008 but add to profit in 2009.

In connection with the deal, Huron borrowed $164 million under its credit agreement, which consists of a $220 million senior secured term loan and a $240 million senior secured revolving credit facility, both of which mature in February 2012.

Huron also amended its 2006 agreement to acquire Wellspring Partners LTD to modify the terms of the Wellspring earn-out related to the revenue cycle business. Consideration for the amendment consisted of $20 million of stock, subject to adjustment.

Shares fell $1.39, or 2.9 percent, to $46.09 during aftermarket electronic trading, after closing up $2.59, or 5.8 percent, at $47.48.