Georgia-based Digirad Corp. (NSDQ:DRAD) has expanded its geographical reach by acquiring MD Office Solutions, a mobile-diagnostic services provider focused on the Northern California market.
Under the terms of the deal, Digirad paid 610,000 common shares up front. MD Office Solutions investors could also receive up to $400,000 over 3 years if certain EBITDA targets are met.
MD Office Solutions, which took in revenue of approximately $2.9 million last year, is expected to generate over $500,000 a year on an EBIDTA basis, according to Digirad.
“As we have been discussing over the last year, 1 component of our growth strategy is to complete disciplined, tuck-in acquisitions within our core businesses," Digirad CEO Matthew Molchan said in prepared remarks.
"MD Office is a very well-run business providing the same mobile nuclear diagnostic imaging services as us. They are in a geographical region that we are not currently in, which fits squarely within our acquisition strategy,” Molchan.
Digirad also issued its 2014 earnings report for the quarter ended Dec. 31, 2014. Revenue shot up 13% to $14.1 million from the same quarter in 2013, while net income slipped 2% to $772,000. Earnings per share, year-over-year, were flat at 4¢.
For the full year, Digirad reported revenue of $55.6 million, up 13% from 2013. Net income soared 840% to $2.5 million, while EPS came in at 20¢ versus 5¢ during 2013. Excluding 1-time items, adjusted profits were $3.5 million, up 441% from 2013, and adjusted EPS were 18¢, versus 3¢ during the prior year.
Digirad also issued financial guidance for 2015, saying it expects revenues of $61 to $63 million and adjusted EPS of 19¢ to 21¢.
