Digirad Corporation, the Suwanee, Ga.-based mobile and in-office imaging service provider, has acquired MD Office Solutions, a mobile diagnostic imaging provider serving Northern California.
In 2014, MD Office generated approximately $2.9 million in revenues. Following a short integration period, MD Office is expected to be accretive on an earnings before interest, taxes, depreciation, and amortization (EBITDA) basis, producing over $500,000 of EBITDA on an annual basis, assuming the same level of 2014 revenues, according to Digirad.
Total upfront consideration issued at closing was 610,000 common shares of the company, and there is a cash earn-out opportunity of up to $400,000 over approximately three years based on meeting certain EBITDA targets.
Matthew Molchan, Digirad president and CEO, said in a statement that the acquisition was part of the company’s growth strategy and that MD Office operated in a region not currently served by Digirad. MD Office will continue to operate from its Northern California location.