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Digirad Corp Stock Rallies 25% After Confirming the $18.75m Sale of DMS Health

Updated: 4 Nov 2020

Diversified holding company Digirad Corporation (NASDAQ: DRAD) has confirmed it will sell DMS health for $18.75 million.

The California-based company said that it has agreed to a stock purchase agreement with the proceeds being used to pay down its debt and finance its growth strategy. 

Digirad transformed into a diversified holding company through its acquisition of ATRM Holdings in October 2019.

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DMS Health is the mobile healthcare business unit of Digirad’s healthcare division and provides contract diagnostic imaging and healthcare expertise via a mobile service. The company generated a revenue of $41.3 million in 2019. 

“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,” commented Matt Molchan, Dad’s CEO.

Shares of Digirad have surged premarket on Wednesday, up 25.05% at $3.17 after closing Tuesday’s session at $2.53. 

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