The FINANCIAL — Digirad Corporation(Nasdaq: DRAD; DRADP) (“Digirad” or the “Company”), a diversified holding company (“HoldCo”) with three divisions: Healthcare, Building & Construction, and Real Estate & Investments, announced today it has entered into a Stock Purchase Agreement (the “Agreement”) to sell itsDMS Health Technologies, Inc.(“DMS Health”) business unit. The purchase price under the Agreement is$18.75 million. The Agreement is subject to customary closing conditions and is expected to close inJanuary 2021.
DMS Healthis theMobile Healthcarebusiness unit of the Company’s Healthcare division.DMS Healthprovides contract diagnostic imaging, including computerized tomography (“CT”), magnetic resonance imaging (“MRI”), positron emission tomography (“PET”), PET/CT, and nuclear medicine and healthcare expertise through a convenient, mobile service. For 2019,DMS Healthgenerated revenue of$41.3 million, approximately 40.1% of the total revenue of the Healthcare division.
Matt Molchan, Digirad’s CEO, said, “The divestiture ofDMS Healthwill allow us to streamline our portfolio of healthcare services by focusing our efforts on selling and servicing ourDigiradbranded solid-state imaging cameras and providing on-site imaging services to hospitals and physicians all over the country.”
Jeff Eberwein, Digirad’s Chairman, noted, “As previously announced, we have been exploring the potential divestiture of assets in addition to pursuing our HoldCo growth strategy. The sale ofDMS Healthwill substantially improve our balance sheet and better position us to fund high-return organic growth investments and to pursue acquisitions. Potential acquisitions could be bolt-ons in Healthcare or Building & Construction or entry into an entirely new business sector.”