Star Equity Holdings Soars 11.52% on Hudson Merger Announcement

On May 22, 2025, Star Equity Holdings, Inc. (STRR) saw a significant pre-market rise of 11.52%, driven by the announcement of a definitive merger agreement with Hudson Global, Inc. (HSON).

The merger, which will create a larger multi-sector holding company, is expected to enhance revenue streams and leverage corporate overhead and public company costs. The combined entity, to be known as "NewCo," aims to achieve $40 million in Adjusted EBITDA by 2030 and is projected to generate at least $2 million in annualized cost savings within the first year of the merger.

Under the terms of the agreement, Hudson will acquire all outstanding common and preferred shares of Star, issuing 0.23 shares of HSON common stock for each share of STRR common stock. The merger is subject to regulatory approvals and the affirmative votes of shareholders from both companies, with the anticipated closing in the second half of 2025.

Both companies have established independent special committees to evaluate the benefits of the merger, which has been approved by the respective boards of directors. The merger is expected to have no impact on clients, employees, or the brand names of any of NewCo’s operating businesses.

Following the merger, NewCo will have four reporting segments: Building Solutions, Business Services, Energy Services, and Investments. The merger is seen as a transformative move for Star, providing shareholders with greater scale, profitability, and stock trading liquidity, as well as the financial advantages of increased market capitalization and the utilization of Hudson’s sizable NOL.