Merger Between Hudson Global and Star Equity Transforms Market
Hudson Global and Star Equity Holdings Complete Significant Merger
– Merger Positions New Entity for Enhanced Growth Opportunities –
OLD GREENWICH, Conn. — Hudson Global, Inc. (Nasdaq: HSON), a prominent global total talent solutions provider, has officially announced the closing of its merger with Star Equity Holdings, Inc. (Nasdaq: STRR; STRRP). This strategic merger, aimed at creating a larger diversified holding company, has garnered stockholder approval at recent meetings.
The common stock of Hudson Global will continue to be traded under the symbol "HSON," while the newly formed company will transition its preferred stock to the Nasdaq with the ticker symbol "HSONP". Notably, trading of Star’s common and preferred stock has been suspended following this successful merger.
As part of the merger agreement, each outstanding share of Star’s common stock was converted to 0.23 shares of Hudson Global common stock. Similarly, each share of Star’s preferred stock will convert into one share of Hudson Global's 10% Series A Cumulative Perpetual Preferred Stock. Both companies are setup for a seamless transition as they align their operations and goals.
Excitingly, Hudson Global plans to adopt a new name, Star Equity Holdings, Inc., along with a change to its stock ticker symbols to STRR and STRRP respectively in the near future.
CEO Jeff Eberwein expressed excitement about the finished merger, stating, “We appreciate the unwavering support from stockholders and independent directors during this transformative journey. The union of our two companies opens a multitude of opportunities which we aim to maximize. This merger positions us to leverage our enhanced size and diversified revenue avenues for better profitability and stockholder appreciation moving forward.”
This merger culminates in the creation of a multifaceted holding company with projected annual revenues now reached $210 million, enhancing revenue diversity, and paving the way for potential inclusion in the Russell 2000 index. Moreover, it significantly augments the prospects of utilizing Hudson Global’s substantial $240 million in net operating losses.
Corporate Structure and Management Overview
The merger has resulted in Hudson Global organizing itself into four operational segments: Building Solutions, Business Services, Energy Services, and Investments. It is important to note that this transition is not expected to affect existing clients, employees, or the identification of the Company’s various operating divisions.
The board of directors is now composed of seven members, with six being independent. Eberwein takes the helm as CEO, while Rick Coleman serves as COO. This strong leadership is expected to guide the newly formed entity towards substantial growth.
Overview of Business Divisions
Building Solutions
The Building Solutions division encompasses modular building manufacturing, structural wall panel and wood foundation manufacturing, and glue-laminated timber manufacturing. This diverse operation is set to meet a range of construction needs across various markets.
Business Services
Under Business Services, Hudson Global provides tailored recruitment solutions designed to cater to diverse clients. The division covers various employee levels and emphasizes forming collaborative partnerships with HR departments and procurement leaders to construct high-performing teams.
Energy Services
Specializing in the rental, sale, and repair of downhole tools, the Energy Services division is geared towards the oil and gas, geothermal, mining, and water-well industries. This segment aims to support energy sector operations with specialized equipment solutions.
Investments
Hudson Global's Investments division is responsible for managing and financing both real estate assets and investment positions in both private and public sectors. This strategic arm focuses on optimizing financial performance and providing valuable return opportunities.
For additional inquiries, please reach out via email at ir@hudsonrpo.com.
Frequently Asked Questions
1. What is the significance of the Hudson Global and Star Equity merger?
This merger produces a larger, diversified holding company poised for enhanced growth and profitability.
2. How will the stock ticker symbols change after the merger?
Hudson Global will trade under the symbol “HSON,” and its preferred stock will use the ticker “HSONP” post-merger.
3. What are the new divisions created by this merger?
The merger creates four segments: Building Solutions, Business Services, Energy Services, and Investments.
4. Who is leading the newly formed company?
Jeff Eberwein serves as CEO and Rick Coleman is COO, supported by a predominantly independent board.
5. What are the anticipated financial impacts of the merger?
The merger is expected to generate pro-forma revenues of $210 million and improve the pathway for possible inclusion in the Russell 2000 index.
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