Star Equity Holdings and Hudson Global Sign Definitive Merger Agreement

Deal News | May 21, 2025 | EIN

Star Equity Holdings and Hudson Global Sign Definitive Merger Agreement

Star Equity Holdings and Hudson Global have entered into a definitive merger agreement aimed at creating a larger multi-sector holding company, NewCo. The merger is set to enhance scale, diversify revenue streams, and achieve cost efficiencies, with projected pro-forma annualized revenues of $210 million and a target of $40 million in adjusted EBITDA by 2030. The transaction, structured as a stock-for-stock exchange, has been approved by the boards and special committees of both companies. Subject to regulatory and shareholder approvals, the merger is expected to close in the second half of 2025. Additionally, NewCo aims to leverage $240 million in net operating losses and increase share liquidity and market capitalization.

Sectors

  • Mergers and Acquisitions
  • Diversified Conglomerates

Geography

  • United States – Both Star Equity Holdings and Hudson Global are based in the United States and the merger will form a new U.S.-based entity.

Industry

  • Mergers and Acquisitions – The article discusses a merger transaction between Star Equity Holdings and Hudson Global.
  • Diversified Conglomerates – Following the merger, NewCo will be a multi-sector holding company with interests including building solutions, energy services, and investments.

Financials

  • $210 million – Pro-forma annualized revenues expected for NewCo post-merger.
  • $40 million – Targeted Adjusted EBITDA for NewCo by the year 2030.
  • $2 million – Projected annualized cost savings from synergies within 12 months of merger completion.
  • $240 million – Hudson Global's U.S. Federal net operating losses valuable for shareholder value.
  • 0.23 shares – Stock exchange ratio: Hudson will issue 0.23 shares of common stock for each Star common stock.

Participants

NameRoleTypeDescription
Star Equity Holdings, Inc.Target CompanyCompanyA diversified holding company with divisions in building solutions, energy services, and investments.
Hudson Global, Inc.Bidding CompanyCompanyA global total talent solutions provider operating under the brand name Hudson RPO.
Jeff EberweinCEOPeopleCEO of Hudson Global who will become CEO of NewCo.
Rick ColemanCEOPeopleCEO of Star Equity Holdings who will become COO of NewCo.
Oberon SecuritiesFinancial Advisor for StarCompanyFinancial advisor to Star Equity Holdings on the merger.
Littman KrooksLegal Advisor for StarCompanyLegal advisor to Star Equity Holdings on the merger.
Houlihan LokeyFinancial Advisor for HudsonCompanyFinancial advisor to Hudson Global on the merger.
Morgan LewisLegal Advisor for HudsonCompanyLegal advisor to Hudson Global on the merger.