Digirad Corporation (NASDAQ: DRAD) has announced that it has decided to sell its DMS Health Technologies, Inc business unit. Digirad is a diversified company working in three divisions. The company’s division includes Building and Construction, Real Estate & Investments, and Healthcare.

As per the Stock Purchase Agreement, the company will receive $18.75 million for the sale of its health business unit. The Stock Purchase Agreement is based on customary closing conditions and it is projected that the transaction will be completed in January 2021.

DMS Health comes under the Healthcare division of the company and it is the Mobile Healthcare business unit. DMS Health offers contract diagnostic imaging such as magnetic resonance imaging (MRI), computerized tomography (CT), positron emission tomography (PET), PET/CT, and nuclear medicine and healthcare expertise through a convenient, mobile service.

Digirad Corporation (NASDAQ: DRAD) shares soared 21.90% at $3.09 at the pre-market trading session of Wednesday. In the pre-market session, it has recorded a trading volume of 4.85 million as compared to the average volume of 199.69K.  Digirad Corporation (DRAD) share price went from a low point around $1.99 to briefly over $8.84 in the past 52 weeks. DRAD market cap has remained high, hitting $12.17 Million at the time of writing.

Digirad’s CEO, Matt Molchan revealed that the decision of divestiture will help the company to run its business. The company is planning to focus its efforts on selling and servicing its Digirad branded solid-state imaging cameras. It is also planning to offer on-site imaging services to hospitals and physicians all over the country.

Additionally, The company revealed that the divestiture decision will improve its balance sheet and improve its position and help the company to gain new opportunities for investments and acquisitions.