Star Equity to buy Harte Hanks for $38.4Mn
CONNECTICUT, UNITED STATES — Star Equity Holdings agreed to acquire Harte Hanks at $5.00 per share, valuing the global business process outsourcing (BPO) and customer experience company at approximately $38.4 million in equity.
Up to half the consideration will be paid in cash, with the balance in Star preferred stock. The deal is expected to close before year-end 2026.
Harte Hanks joins Star’s growing Business Services division
Harte Hanks delivers customer experience services across marketing, sales support, data management, fulfillment, and logistics for global clients.
Under Star’s structure, the company will continue operating under the Harte Hanks brand with its management teams and client relationships intact, folded into Star’s Business Services division alongside Hudson Talent Solutions.
“We are excited to announce the signing of this merger agreement. Harte Hanks is a business we have followed for years, with a century-long heritage, blue-chip clients, and talented people,” said Jeff Eberwein, chief executive officer at Star Equity Holdings.
“Our team has run this playbook before – bring a good operating business inside our holding company structure, remove duplicative public company and corporate costs, and let the operators focus on serving clients and growing the business,” Eberwein added.
Synergies and scale through a combined outsourcing platform
Star projects approximately $10 million in annualized cost synergies from eliminating duplicative public company and corporate overhead.
The combined entity will generate roughly $384 million in annual pro-forma revenue, giving Star a diversified platform spanning customer experience, marketing operations, data services, and talent solutions.
Eberwein added, “We believe that adding Harte Hanks to our Business Services division alongside Hudson Talent Solutions creates a scaled, diversified outsourcing platform, and that the cost savings and increased revenue diversity will generate considerable value to our shareholders over time,”
“We intend to move quickly on integration, leveraging Hudson Talent Solutions’ back-office infrastructure to eliminate duplicative operating-company overhead, while Harte Hanks continues to operate under its own brand with its operating teams and client relationships intact from day one,” Eberwein said.
The deal expands Star’s BPO reach at a time when mid-market outsourcing platforms are consolidating to compete with larger global players on service breadth.
Harte Hanks’ global delivery network and Hudson Talent Solutions’ existing infrastructure give the merged entity a foundation for cross-selling and margin improvement without significant capital outlay.
A 30-day go-shop period ending September 13, 2026, allows Harte Hanks to evaluate alternative proposals before the deal closes.
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