Georgia medical imaging manufacturer Digirad Corp. this month announced plans to acquire a manufacturer of modular housing units and transition into a holding company.
Digirad said its board approved the deal with Minnesota-based ATRM Holdings Inc. as a “kick-off” transaction to create the diversified holding company. It would add ATRM’s modular building, wall panel, and wood foundation operations to Digirad’s current production of CT, MRI, and other diagnostic imaging technology.
The company said the addition of more diverse operations as part of a holding company structure would improve revenue, earnings, and cash flow while creating “a platform for future bolt-on acquisitions and other growth opportunities.”
Under the agreement, Digirad would list Series A stock on the Nasdaq exchange and provide ATRM shareholders — should they approve the deal — with 0.03 shares for every common share of ATRM. ATRM Series B stock, meanwhile, would be exchanged for 2.5 shares of the Digirad Series A stock.
The CEOs of each company, along with other top executives, would comprise its leadership structure following the merger, which is expected to close in the third quarter of the year.
