What the bad jobs report means for markets
OLD GREENWICH, Conn. - Star Equity Holdings, Inc. (NASDAQ: STRR) and Hudson Global, Inc. (NASDAQ: HSON) have signed a definitive merger agreement, the companies announced today. Hudson Global, currently trading at $9.65 and maintaining a strong balance sheet with more cash than debt, will merge with Star Equity to form a combined entity referred to as NewCo. According to InvestingPro analysis, Hudson Global appears undervalued based on its Fair Value assessment.
The transaction, approved by both companies’ Boards of Directors and their respective independent special committees, is subject to regulatory clearances and the approval of both Hudson and Star shareholders. Shareholder meetings are scheduled later this year to vote on the merger, with both Boards recommending a vote in favor.
The merger aims to create a more substantial multi-sector holding company, with pro-forma annualized revenues of $210 million, significantly expanding Hudson’s current revenue base of $138 million. The combined entity targets an Adjusted EBITDA of $40 million by 2030 and anticipates at least $2 million in annualized cost savings within 12 months post-merger. The transaction is structured as a stock-for-stock deal, with Hudson set to acquire all outstanding shares of Star. Upon completion, Hudson shareholders will own roughly 79% of NewCo, and Star shareholders will own about 21%. InvestingPro data reveals Hudson’s current market capitalization stands at $26.5 million, with the merger potentially addressing its recent profitability challenges.
Jeff Eberwein, CEO of Hudson, expressed confidence in the merger’s potential to enhance shareholder value, citing the focus on organic and inorganic growth opportunities at the operating level. Rick Coleman, CEO of Star, highlighted the transformative nature of the deal for Star, emphasizing the benefits of increased scale, profitability, and market capitalization.
NewCo will have four reporting segments: Building Solutions, Business Services, Energy Services, and Investments. The transaction is expected to have no impact on clients, employees, or the brand names of the operating businesses. The combined board will consist of three independent directors from each company and Jeff Eberwein, who will serve as CEO, with Rick Coleman as COO.
The merger is anticipated to close in the second half of 2025, pending approvals. A joint conference call is scheduled for Thursday to discuss further details of the merger.
This news is based on a press release statement from Hudson Global, Inc. For comprehensive analysis of Hudson Global’s financial health, valuation metrics, and additional ProTips, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.
In other recent news, Hudson Global Inc. reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.46, significantly higher than the projected $0.21. However, the company’s revenue fell short, coming in at $31.9 million compared to the anticipated $37.55 million. Hudson Global has also announced the launch of a new digital division focusing on AI technology, as part of its strategic expansion into the Middle East, Latin America, and India. The company reported an adjusted net revenue increase of 2.2% year-over-year, despite a 3.3% decline in overall revenue. Adjusted EBITDA showed improvement, with a loss of $700,000 compared to a $1.5 million loss in the same quarter last year. The net loss for the quarter was $1.8 million or $0.59 per share, an improvement from a $2.9 million loss or $0.95 per share in Q1 2024. Analysts noted Hudson Global’s optimistic outlook on digital transformation with the upcoming launch of "Hudson Fusion" by the end of Q3 or early Q4 2025. The company is focusing on organic growth and potential strategic acquisitions, aiming to enhance shareholder value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.