Digirad Sells to Philips North, Stocks Vault

Digirad Corporation (NASDAQ: DRAD) reported the sale of Medical Device Sales and Service business unit service contracts to Philips North America for $8 million.

The company, based in Suwanee, Georgia, said the agreement is subject to customary closing conditions, and is expected to close on January 31, 2018. The Company expects to apply the net proceeds from the sale to its existing line of credit with Comerica.

As part of the Agreement, Digirad and Philips agreed to extend its prior Consolidated Service Agreement to continue to provide installation and warranty services sold in the same upper mid-west region through January 31, 2018.

Digirad President and CEO Matt Molchan said, "Over the last few months we have been evaluating our opportunity to run this service business outside our prior Philips relationship, and we determined that the best value for the business would be in the hands of Philips.

"We are very pleased with the economics and outcome of this Agreement, and this transaction will better position Digirad to focus on its core business – providing convenient mobile diagnostic healthcare solutions."

Digirad takes price in delivering convenient, effective, and efficient healthcare solutions on an as needed, when needed, and where needed basis. Digirad’s diverse portfolio of mobile health-care solutions and diagnostic imaging equipment and services, provides hospitals, physician practices, and imaging centers through the United States access to technology and services necessary to provide exceptional patient care in the rapidly changing healthcare environment.

Digirad stock hurtled 66 cents, or 29.1%, Thursday to $2.91