This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Digirad Acquires Telerhythmics

SUWANEE, Ga., March 14, 2014 (GLOBE NEWSWIRE) -- Digirad Corporation (Nasdaq:DRAD), the leader in providing diagnostic imaging services and technology on an as needed, where needed, and when needed basis, announced today that it has acquired all the outstanding membership interest of Telerhythmics, LLC, a 24-hour cardiac event monitoring service used on an outsourced basis by hospitals and physician offices. Based in Memphis, Tennessee, privately-held Telerhythmics provides its monitoring services throughout the eastern region of the U.S.

Total up front consideration for the purchase was approximately $3.6 million, which included a $3.47 million cash payment up front and assumption of approximately $131,000 in debt. In addition, there is an earn-out opportunity of up to $501,000 over approximately three years based on meeting certain EBITDA targets. Telerhythmics will continue to operate from its current facility in Memphis. Further information is contained in a Form 8-K filed today with the U.S. Securities and Exchange Commission.

Digirad President and CEO Matthew G. Molchan commented, "Telerhythmics, like Digirad's DIS operations, is a platform business that can support additional services, and cardiac event monitoring is an important outsourced service. Telerhythmics is also a solid, entrenched enterprise with nearly 20 years in the business and has a high quality reputation in the industry."

Telerhythmics generated approximately $5.6 million in revenue in 2013. Once Telerhythmics goes through a short integration period, it is expected to be accretive on an EBITDA basis. Under Digirad's ownership and at the 2013 level of annual revenue, it is expected the business will generate approximately $350,000 of EBITDA in the first twelve months, and then approximately $800,000 of EBITDA annually thereafter.

Molchan continued, "The addition of Telerhythmics fits squarely in our business model and our mission to provide medical services and technology on an as needed, where needed and when needed basis. Its target market is virtually the same as our target market with DIS, and acquiring Telerhythmics allows us to drive additional services via our existing channels and expand and diversify our business operations, allowing us more opportunities to grow and broaden our geographic reach."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,039.49 +60.36 0.36%
S&P 500 1,992.37 +5.86 0.30%
NASDAQ 4,532.1040 +5.6220 0.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs