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Digirad News: Why DRAD Stock Is Soaring 28% Today

Digirad (NASDAQ:DRAD) news for Wednesday includes the sale of part of its business pushing DRAD stock higher.

stethoscope on a stock chart representing healthcare stocks to buy
Source: Shutterstock

According to a Digirad news release, the company is selling its DMS Health Technologies business for $18.75 million. This is the mobile division of the company’s healthcare business. It includes contract diagnostic imaging via a variety of options.

Digirad notes that the sale of DMS Health Technologies is taking place in the form of a Stock Purchase Agreement. It also mentions that it’s set to close in January 2021 after completing customary closing conditions.

The Digirad news release notes that the selling of DMS Health Technologies will allow the company to better focus its healthcare business. That includes selling and serving its solid-state imaging cameras, as well as offering on-site imaging services to hospitals and physicians.

Jeff Eberwein, chairman of Digirad, said the following about the news.

“As previously announced, we have been exploring the potential divestiture of assets in addition to pursuing our HoldCo growth strategy. The sale of DMS Health will substantially improve our balance sheet and better position us to fund high-return organic growth investments and to pursue acquisitions. Potential acquisitions could be bolt-ons in Healthcare or Building & Construction or entry into an entirely new business sector.”

Digirad is a holding company that operates in three divisions. That includes the already-mentioned healthcare business. The other two divisions are its building and construction business, and its real estate & investments business.

DRAD stock was up 28.3% as of Wednesday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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