Digirad To Purchase DMS Health Technologies From Platinum Equity For $36 Mln

(RTTNews) - Digirad Corp. (DRAD) announced a definitive agreement to acquire all the outstanding equity of Project Rendezvous Holding Corp., the ultimate parent company of DMS Health Technologies, Inc., for $36 million in cash from Los Angeles-based Platinum Equity.

The Fargo, North Dakota-based DMS Health has approximately 250 employees and provides mobile diagnostic imaging and related sales and services to small and regional hospitals. Platinum Equity acquired DMS Health in February 2012 from Otter Tail Corp. (OTTR).

Digirad expects this transaction to increase its pro forma annual revenue and adjusted EBITDA to over $125 million and $17 million, respectively. Digirad expects this transaction, which is expected to be immediately accretive to earnings and cash flow on an adjusted basis, to close before the end of the year.

Digirad said it remains committed to its current quarterly dividend of $0.05 per share.