Star Equity Holdings, Inc. and Hudson Global, Inc. have announced the signing of a definitive merger agreement. In this transaction, Star will merge into a wholly owned subsidiary of Hudson to form a new company, referred to as "NewCo." This merger is designed to create a larger multi-sector holding company with an annualized revenue of $210 million and aims to diversify revenue streams and leverage corporate overhead. The management team for NewCo will include Jeff Eberwein as CEO and Rick Coleman as COO. The merger is still subject to regulatory approvals and affirmative votes from the shareholders of both companies. Hudson currently holds $240 million in net operating losses in the U.S., considered a valuable asset for its stockholders. Both companies will host a joint conference call on May 22 to discuss the merger further.
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