Nuclear medicine firm Digirad has acquired MD Office Solutions, a mobile diagnostic imaging provider serving customers in Northern California.
MD Office generated approximately $2.9 million in revenues in 2014, according to the company. When it becomes part of Digirad, the company expects its purchase to contribute more than $500,000 of earnings before interest, taxes, depreciation, and amortization (EBITDA) on an annual basis, if 2014 revenues are maintained.
MD Office will continue to operate from its Northern California location.
Digirad President and CEO Matthew Molchan said the transaction keeps with the company's growth strategy within its core businesses.
Digirad issued 610,000 common shares as part of the purchase, along with a cash earn-out opportunity of up to $400,000 over approximately three years based on meeting certain EBITDA targets.
