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 its DMS 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 in January 2021.
DMS Health is the Mobile Healthcare business unit of the Company’s Healthcare division. DMS Health provides 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 Health generated revenue of $41.3 million, approximately 40.1% of the total revenue of the Healthcare division.
Matt Molchan, Digirad’s CEO, said, “The divestiture of DMS Health will allow us to streamline our portfolio of healthcare services by focusing our efforts on selling and servicing our Digirad branded 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 of DMS Health will 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.”