Digirad Corporation (NASDAQ: DRAD) agreed to sell its DMS Health Technologies business unit.
The Suwanee, Ga. Company announced it had entered into a Stock Purchase Agreement to sell its DMS Health Technologies, Inc. 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, magnetic resonance imaging, positron emission tomography, 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."
Digirad Corporation is a diversified holding company with three divisions: Healthcare, Building & Construction, and Real Estate & Investments.
Digirad Health operates in three businesses: Diagnostic Imaging, Diagnostic Services, and Mobile Healthcare.
Its building and construction division manufactures modular housing units for commercial and residential real estate projects. ATRM operates in two businesses: (i) modular building manufacturing and (ii) structural wall panel and wood foundation manufacturing, including building supply retail operations.
This business division manages the Company’s real estate assets and investments.
DRAD shares gained 68 cents, or 26.6%, to $3.21.
