Digirad Corp. (Nasdaq: DRAD) has acquired MD Office Solutions.
MD Office, headquartered in Hayward, California, provides mobile diagnostics imaging services to customers in northern California. The company had about $2.9 million in revenue for 2014.
Suwanee, Georgia-based Digirad also provides mobile imaging services, specializing in nuclear cardiology and ultrasound imaging for physician practices, hospitals and other imaging centers. The company also sells medical imaging systems. The deal for MD Office gives the company a presence in northern California, where it did not previously have operations.
Digirad paid for the deal in stock 610,000 shares at closing. Depending on MD Office's Ebitda over the next three years, the buyer may make a $400,000 cash payment. Digirad's shares traded up after the deal was announced, from $4.40 on March 5 to about $4.91 the morning of March 6.
As the Affordable Care Act brings more patients into the U.S. health care system, companies have been bulking up on various technologies to take costs out of the system and keep up with demand. In February, Sharecare picked up Feingold Technologies, which aims to analyze and understand human mindsets and behaviors through voice and text analysis. Also in February, SpecialtyCare agreed to buy ProNerve, a surgery-monitoring provider.
For more on the trend, see 5 Technologies That Drove Health Care M&A in 2014.