Investment firm upgrades Digirad’s stock 1 week after DMS Health acquisition
Digirad Corporation has had an eventful October, and the month isn’t even over yet.
Last week, the developer and manufacturer of diagnostic imaging systems entered into a definitive agreement to acquire DMS Health Technologies for $36 million, and now the company’s stock has been upgraded to a “buy” rating by the investment research firm Zacks.
This came after Digirad’s stock was downgraded to “sell” by Zacks back in September.
In a statement about the DMS Health acquisition, Matt Molchan, Digirad’s president and CEO, called the deal a “significant milestone” in the company’s history.
“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,” Molchan said. “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.”
DMS Health generated more than $65 million in revenue in 2014.
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.