Digirad Corporation has entered into a definitive purchase agreement with Philips North America to sell its Medical Device Sales and Service (MDSS) business unit service contracts. The total consideration under the agreement is $8 million.
Digirad President and CEO Matt Molchan said, “Over the last few months we have been evaluating our opportunity to run this service business outside our prior Philips relationship, and we determined that the best value for the business would be in the hands of Philips. We are very pleased with the economics and outcome of this agreement, and this transaction will better position
Digirad to focus on its core business – providing convenient mobile diagnostic health care solutions.”
The MDSS business unit provided post warranty contract maintenance services for large diagnostic imaging equipment, primarily in the upper mid-west region of the United States, for Philips products.
As part of the agreement, Digirad and Philips agreed to extend its prior consolidated service agreement to continue to provide installation and warranty services sold in the same upper mid-west region through January 31, 2018.
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