Hudson Global to merge with Star Equity in $28Mn all-stock deal
CONNECTICUT, UNITED STATES — Hudson Global, Inc., a provider of recruitment process outsourcing (RPO) solutions, has signed a definitive agreement to merge with Star Equity Holdings, Inc., a diversified holding company with interests in construction, energy services, and investments.
The all-stock deal, valued at approximately $27.87 million, aims to create a stronger, more diversified company positioned for long-term growth and improved shareholder returns.
The transaction will see Star merge into a wholly owned subsidiary of Hudson, with Hudson emerging as the surviving public entity.
Hudson will issue 0.23 shares of its common stock for each Star common share and match Star’s preferred stock on a one-for-one basis. The merger, pending shareholder and regulatory approval, is expected to close in the second half of 2025.
NewCo to operate across four business segments
The merged entity, referred to as “NewCo,” will operate four distinct business segments:
- Business Services: Hudson RPO, which provides global talent solutions across the Americas, Europe, and Asia Pacific.
- Building Solutions: Including KBS Builders, EdgeBuilder-Glenbrook, and Timber Technologies.
- Energy Services: Represented by Alliance Drilling Tools.
- Investments: Managed under Star’s investments division.
With pro forma annualized revenue of $210 million and a target of $40 million in adjusted EBITDA by 2030, the combined company seeks to leverage cost synergies, revenue diversification, and operational efficiencies.
An estimated $2 million in cost savings is expected within the first year, equating to roughly $0.57 in incremental EPS.
Leadership and shareholder structure
Jeff Eberwein, current CEO of Hudson and Executive Chairman of Star, will lead NewCo as CEO. Rick Coleman, Star’s CEO, will serve as Chief Operating Officer.
Post-merger, Hudson shareholders will own approximately 79% of NewCo, with Star shareholders holding the remaining 21% of the estimated 3.49 million outstanding shares.
“This combination will create more shareholder value than either company could achieve independently,” said Eberwein.
“We believe the cost savings and diversification of revenue streams will provide considerable value to shareholders.”
Coleman called the deal “transformative,” emphasizing the opportunity to scale and leverage Hudson’s $240 million in net operating loss carryforwards (NOLs) alongside Star’s own $62 million in federal and state NOLs.
No disruption to clients or employees
The companies stated that no disruption is expected to brands, employees, or client services. The merged firm will retain the brand identities of its subsidiaries and maintain current operations without layoffs or restructuring.
Both firms are headquartered in Old Greenwich, Connecticut.
