HealthStream paid approximately $25 million in cash as part of the deal, which includes a 10 percent stake it acquired from a previous investment in NurseGrid.
Founded in 2013, NurseGrid sells staffing and scheduling software built for nurses. There are more than 260,000 monthly active users on NurseGrid, which offers both the app and NurseGrid Enterprise, a SaaS-based product for nurse managers.
“NurseGrid has an incredibly active and engaged community of nurses who have made our app part of their routine,” NurseGrid CEO Rob MacNaughton said in a statement. “Much of NurseGrid’s growth, to date, has been word of mouth. Now, with HealthStream, we can expand the reach of NurseGrid Mobile and NurseGrid Enterprise by tapping into the HealthStream network.”
Healthstream launched back in 1990 and sells a variety of healthcare HR-related services, including onboarding software and a digital mentor for nurses. The company has more than 850 employees and reported $254 million in revenue last year, up 10 percent.
“We value the community of nurses using NurseGrid and believe that, together, HealthStream and NurseGrid can bring more value to nurses and the healthcare organizations they work for,” HealthStream CEO Robert A. Frist, Jr. said in a statement.
Joe Novello, a longtime nurse, founded NurseGrid and ran the company until February 2019, when MacNaughton took over after a stint with Cambia Health Solutions. Novello stepped down from the board this past December, according to his LinkedIn profile.
“HealthStream has a been a great supporter of NurseGrid; they are the perfect fit to take NurseGrid and our community of nurse users to the next level,” Novello said in a statement.
NurseGrid is unprofitable and employs approximately 20 people. The company raised $12.5 million from investors. Backers include Hatteras Venture Partners, Excelerate Health Ventures, Toba Capital, HealthBox, and the Portland Seed Fund.
HealthStream expects revenue contributions of less than $500,000 from the acquisition this year.