Suwanee, GA – CriticalPoint Partners, LLC (“CPP”) is pleased to announce that it represented Star Equity Holdings, Inc., formerly known as Digirad Corporation (NASDAQ: STRR; STRRP) (“Star Equity” or the “Company”), in the sale of its mobile medical-imaging division, DMS Health Technologies, Inc. (“DMS Health”) to Knob Creek Acquisition Corporation. Proceeds from the sale will help to pay down debt and finance the Company’s growth strategy. The transaction closed on March 31, 2021 and follows the Company’s sale of its Medical Device Sales and Service business unit contracts to Philips North America in February of 2018.
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. To learn more about DMS Health please visit: www.dmshealth.com.
Star Equity is a diversified holding company with three divisions: Healthcare, Construction, and Investments. To learn more about Star Equity please visit: www.starequity.com.
“CPP understood our team’s goals throughout the process and was extremely helpful during our ownership of DMS Health,” stated Matt Molchan, CEO of Star Equity’s Healthcare division, Digirad Health, Inc. “Their strong industry, operational and financial knowledge ensured we maximized the transactional outcome for all of our stakeholders.”
The transaction demonstrates the long-standing partnership CriticalPoint Partners has had with the Company and the successful outcome of the sale of DMS Health is a testament to CPP’s role as a trusted advisor with proven abilities to deliver for its clients.
CPP served as the exclusive financial advisor to Star Equity in connection with the transaction.
Please contact Matt Young and Luke Ewing with any questions about this transaction.
Headquartered in Los Angeles, CriticalPoint is a leading middle market M&A advisory and investment banking firm focused on sourcing, negotiating, and executing a range of corporate finance solutions to enhance shareholder value while building long-term partnerships with our clients. To learn more about CriticalPoint, please visit www.criticalpointpartners.com.
Messrs. Young and Ewing are Registered Representatives of and Securities Products offered through CriticalPoint Partners, LLC Member FINRA (www.FINRA.org), SIPC (www.SPIC.org). CriticalPoint Partners, LLC and CriticalPoint Partners, LLC are separate and unaffiliated entities. Any testimonial or endorsement may not be representative of the experience of other customers and is no guarantee of future performance or success.