Los Angeles (Oct. 14, 2015) – Platinum Equity today announced it has signed a definitive agreement to sell DMS Health Technologies (“DMS Health”) to Digirad Corporation (NASDAQ: DRAD). The transaction is expected to close by the end of 2015.
Headquartered in Fargo, North Dakota, DMS Health provides mobile diagnostic imaging and related sales and services to small and regional hospitals throughout the country, with a large concentration in the upper Midwest region. Platinum Equity acquired DMS Health in February 2012 from Otter Tail Corporation.
“The success of DMS Health again demonstrates the advantage Platinum Equity has in the lower middle market, with nearly two decades of corporate carve out experience and a deep bench of operations resources deployed in service of our portfolio companies,” said Platinum Equity Partner Bob Wymbs, who oversees the M&A team focused on lower middle market acquisitions. “That’s a powerful combination that benefits corporate sellers, our portfolio companies, and the customers, employees and other stakeholders those businesses serve.”
Over the past three years, Platinum Equity worked closely with DMS Health to effect a seamless transition from its former parent, focus the company on its core business lines, assemble an experienced, cohesive leadership team, and establish new imaging channel partnerships.
Mr. Wymbs said DMS Health is well positioned for continued success under Digirad’s ownership.
“The business is fundamentally strong, with a great management team and dedicated employees who are committed to delivering for their customers,” said Mr. Wymbs. “It is a great fit for Digirad going forward.”
Founded in 1995 by Tom Gores, Platinum Equity (www.platinumequity.com) is a global investment firm with more than $6 billion of assets under management and a portfolio of approximately 30 operating companies that serve customers around the world. In 2014, Platinum Equity portfolio companies generated more than $17 billion in revenue. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 20 years Platinum Equity has completed more than 150 acquisitions.