Digirad Corp. (NSDQ:DRAD) said earlier this week it picked up DMS Health for $36 million.
Fargo, N.D.-based DMS Health provides mobile diagnostic imaging and related sales and other services to regional hospitals, concentrated in the midwest, Digirad said.
“We believe this acquisition represents a significant milestone in Digirad’s history, and should generate considerable value for our customers and our shareholders and enhanced opportunities for the employees of both companies. The integration of DMS Health and Digirad will enable the combined company to expand its range of customers serviced as well as provide significant geographical and service level diversification. DMS Health is an ideal strategic fit for us and our commitment to providing healthcare solutions on an as needed, when needed, and where needed basis,” CEO Matt Molchan said in prepared remarks.
To fund the purchase, Digirad will be taking out a senior secured credit facility of up to $40 million. DMS reported revenues of $65 million in 2014, and Digirad expects the new acquisition will generate pro forma annual revenue of over $125 million.
“Today is an exciting day for the entire DMS Health team and for the future of our company. Digirad is an ideal fit for our company; they know the industry and our market very well, and we believe the Digirad team is uniquely suited to help us grow in the future,” DMS Health CEO William Vogel said in a press release.
Digirad said it expects the purchase to close before the end of the year.
In July, Digirda said it completed a strategic partnership deal with Perma-Fix Medical S.A., a subsidiary of Perma-Fix Environmental Services.
Digirad invested $1 million into Perma-Fix Medical, constituting 5.4% of outstanding shares and appointed Digirad CEO Matt Molchan to Perma-Fix Medical’s supervisory board.
The deal will position Perma-Fix Medical as the preferred supplier for Tc-99m resin, which Perma-Fix Medical is currently developing, to be used for Digirad’s nuclear imaging operations.