Nuclear medicine firm Digirad has inked a definitive agreement to sell its Medical Device Sales and Service (MDSS) business unit service contracts to Philips Healthcare for $8 million.
Digirad's MDSS business unit had been providing postwarranty contract maintenance services for large diagnostic imaging equipment from Philips, primarily in the upper Midwest region of the U.S. The transaction will enable Digirad to focus on its core business of providing mobile diagnostic healthcare products, according to the vendor.
The deal is subject to customary closing conditions and is expected to close on January 31, 2018. As part of the agreement, Digirad and Philips agreed to extend their prior consolidated service contract to continue providing installation and warranty services in the upper Midwest region through January 31.
Digirad said it plans to apply the net proceeds of the sale to its existing line of credit with Comerica.
