Digirad acquisition excites a bull

• Headquartered in Fargo, ND, DMS Health has about 250 employees and provides mobile diagnostic imaging and related sales and services to small and regional hospitals across the country, but particularly in the upper Midwest.
• The company had more than $65M in revenue last year.
• The $36M all-cash deal is expected to be immediately accretive to Digirad's (DRAD) adjusted earnings and cash flow. Pro forma annual revenue and adjusted EBITDA for the combined entities should be more than $125M and $17M, respectively. The purchase is expected to close this year.
• A conference call is set for 11 ET.
• Presentation slides
• Source: Press Release
• A bull on Digirad for some time, Dane Capital Management says the deal "looks like a game-changer." DRAD is currently selling at 8.5x enterprise value/EBITDA, is paying $36M, and now expects $17M in EBITDA going forward. At that same 8.5x multiple, this makes the stock worth $6.50 versus last night's close of $4.08. The company's $93M of Federal net operating losses and $28M in state NOLs mean the boosted profits are protected from taxes.