Nuclear medicine firm Digirad has completed its acquisition of DMS Health Technologies, as of January 1.
Digirad expects the new combined entity to generate pro forma annual revenue of more than $125 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $17 million. DMS Health and its approximately 250 employees provide medical equipment and diagnostic imaging services to healthcare systems.
R. William Vogel will remain the CEO of DMS Health Technologies. Vogel received 20,000 restricted stock units of Digirad as an employment incentive.
Digirad also announced that it closed on a senior secured credit line from Wells Fargo, with a total commitment of up to $40 million that the company used to partially fund the transaction, along with cash on hand.
This acquisition is Digirad's second purchase in less than a year. In March 2015, the company bought MD Office Solutions, a mobile diagnostic imaging provider serving customers in Northern California.
