Star Equity and Hudson Global Finalize Merger Agreement for Strategic Growth

Star Equity Holdings, Inc. and Hudson Global, Inc. have announced a definitive merger agreement that will see Star merge with a wholly owned subsidiary of Hudson to create a new holding company, NewCo. The merger is expected to increase scale, diversify revenue streams, and leverage corporate overhead for both entities. With projected pro-forma annualized revenues of $210 million, NewCo is poised to join the Russell 2000 index. The merger aims to achieve $40 million in Adjusted EBITDA by 2030 and anticipates $2 million in cost savings annually within 12 months post-merger. The merger, structured as a stock-for-stock transaction, requires regulatory and shareholder approvals and is expected to close in the latter half of 2025. Post-merger, NewCo will consist of four segments: Building Solutions, Business Services, Energy Services, and Investments. Management and boards from both companies, with Hudson's Jeff Eberwein as CEO and Star's Rick Coleman as COO, have endorsed the merger, highlighting shareholder value maximization and new growth opportunities as key drivers.