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Holding companies

Hudson Global and Star Equity Holdings Complete Merger to Form a Larger, Diversified Holding Company

Strategic Insights

— 1 min read

Hudson Global, Inc. (Nasdaq: HSON), a leading global total talent solutions company, and Star Equity Holdings, Inc. (Nasdaq: STRR; STRRP), a diversified holding company, have completed their previously announced merger to form a larger, diversified holding company. The merger creates a new entity with pro-forma annualized revenues of $210 million, increased revenue diversity, and the potential to be added to the Russell 2000 index. The combined company will continue to trade on the Nasdaq under the symbol HSON, with the Hudson Global 10% Series A Cumulative Perpetual Preferred Stock trading under ticker symbol HSONP.

Key Takeaways:

  • The merger creates a larger, diversified holding company with pro-forma annualized revenues of $210 million.
  • The combined company will have four reporting segments: Building Solutions, Business Services, Energy Services, and Investments.
  • Hudson Global will continue to trade on the Nasdaq under the symbol HSON, with the Hudson Global 10% Series A Cumulative Perpetual Preferred Stock trading under ticker symbol HSONP.
  • The merger is expected to have no material impact on clients, employees, or brand names of any of the operating businesses.
  • Hudson Global now has a board of directors composed of seven members, six of whom are independent.
  • Jeff Eberwein will serve as CEO, and Rick Coleman as COO.
  • The merger creates a new entity with increased revenue diversity, potential for added revenue through the utilization of Hudson Global's $240 million U.S. federal net operating losses (NOL).
  • The merger increases the likelihood of utilizing Hudson Global's $240 million U.S. federal net operating losses (NOL).

Statistics:

  • Pro-forma annualized revenues: $210 million
  • Number of shares of Hudson Global common stock issued in the merger: 744,291
  • Number of shares of Hudson Global Series A preferred stock issued in the merger: 2,690,637
  • Value of Hudson Global's U.S. federal net operating losses (NOL): $240 million
  • Shares of Hudson Global common stock traded on the Nasdaq: 744,291
  • Hudson Global 10% Series A Cumulative Perpetual Preferred Stock traded on the Nasdaq: 2,690,637

Sources:

  • GlobeNewswire
  • Nasdaq
  • Hudson Global, Inc. (Nasdaq: HSON)
  • Star Equity Holdings, Inc. (Nasdaq: STRR; STRRP)
  • Houlihan Lokey
  • Oberon Securities
  • The Equity Group

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