Investor-owned radiology vendor Digirad on Tuesday announced plans to sell its mobile imaging division for $18.75 million.
The Suwanee, Georgia-based holding company said it hopes to close the transaction in January 2021, subject to certain conditions. Its DMS Health Technologies business provides contract diagnostic imaging including CT, MRI, PET and nuclear medicine through a “convenient, mobile service.”
Last year alone, the division generated some $41.3 million in revenue, representing more than 40% of earnings in Digirad’s healthcare division.
“The divestiture of DMS Health will allow us to streamline our portfolio of healthcare services by focusing our efforts on selling and servicing our Digirad branded solid-state imaging cameras and providing on-site imaging services to hospitals and physicians all over the country,” Digirad CEO Matt Molchan said in a statement.
Tennessee-based Knob Creek Acquisition Corp. is the buyer and plans to purchase all of DMS Health’s outstanding common stock in a cash transaction, according to a filing with the SEC.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.