Digirad Corporation with three divisions: Healthcare, Building & Construction, and Real Estate & Investments, announced today it has entered into a Stock Purchase 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.
Their Building & Construction Division (ATRM)ATRM Holdings, Inc. (“ATRM”) 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.
The modular building manufacturing business is operated by KBS Builders, Inc., the structural wall panel and wood foundation manufacturing segment is operated by EdgeBuilder, Inc., and the retail building supplies are sold through Glenbrook Building Supply, Inc. KBS, EdgeBuilder, and Glenbrook are all wholly-owned subsidiaries of ATRM, which is a wholly-owned subsidiary of Digirad.