The deal provides for about $3.5 million in cash, about $131,000 in debt and another possible $500,000 in earn-outs over the course of 3 years. The Telerhythmics team is planning to stay in Memphis, Tenn., rather than moving to join its new parent company in Suwanee, Ga., were Digirad moved its headquarters earlier this year.
"The addition of Telerhythmics fits squarely in our business model and our mission to provide medical services and technology on an as needed, where needed and when needed basis," Digirad president & CEO Matthew Molchan said in prepared remarks. "Its target market is virtually the same as our target market with DIS, and acquiring Telerhythmics allows us to drive additional services via our existing channels and expand and diversify our business operations, allowing us more opportunities to grow and broaden our geographic reach."
The announcement came a couple of weeks after Digirad announced its 4th-quarter earnings results, featuring a swing to the black for the full year. The company also announced recent efforts to cut costs my outsourcing some of its manufacturing.
For the 3 months ended December 31, Digirad posted profits of $787,000, or 4¢ per diluted share, on sales of $12.5 million. That compared with losses of $1.9 million, or 10¢ per share, on sales of $13 million during the same period the previous year.
For the full year, Digirad posted profits of $264,000, or 1¢ per share, on sales of $49.4 million. That compared with losses of $4.9 million, or 26¢ per share, on sales of $50.5 million in 2012. Adjusted for special items, 2013 per-share earnings amounted to 2¢, according to the report.
The company in January announced efforts to save some cash and streamline operations by shifting its headquarters to Georgia and moving its camera manufacturing, service and support operations to an outsourced provider in the San Diego area.
DRAD shares closed last night at $3.52, up 2.9% on the day. The stock has lost 4.9% since the start of the year.