Investigation into Sale of Star Equity Holdings to Hudson Global

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Business professionals engaged in discussions about the merger between Star Equity Holdings and Hudson Global.

News Summary

An investigation led by former Louisiana Attorney General Charles C. Foti, Jr. is underway regarding the proposed sale of Star Equity Holdings, Inc. to Hudson Global, Inc. The focus is on whether the sale price adequately reflects the company’s value, with shareholders retaining 21% ownership in the merged entity. The merger aims to form a new multi-sector company with significant revenue potential. Stakeholders are encouraged to participate in discussions about their rights regarding this transaction.

New Orleans, Louisiana – An investigation is currently underway concerning the proposed sale of Star Equity Holdings, Inc. to Hudson Global, Inc.. Former Louisiana Attorney General Charles C. Foti, Jr., alongside law firm Kahn Swick & Foti, LLC, is examining whether the sale price and process adequately reflect the value of Star Equity Holdings.

As per the proposal, shareholders of Star Equity Holdings will retain approximately 21% ownership in the merged entity post-transaction. Kahn Swick & Foti, LLC is particularly focused on assessing if the financial terms of the sale might be undervaluing the company. Investors and individuals concerned about the deal are encouraged to reach out to KSF Managing Partner Lewis S. Kahn to discuss their legal rights regarding the transaction.

The merger, announced on May 21, 2025, involves Star Equity merging into a wholly owned subsidiary of Hudson, creating a new entity referred to as NewCo. This joint enterprise is intended to establish a larger multi-sector holding company with predicted annual revenues of $210 million and anticipated cost savings of $2 million within the first year.

The merger is projected to finalize in the latter half of 2025, pending regulatory and shareholder approvals. Following the merger, NewCo will operate through four reporting segments: Building Solutions, Business Services, Energy Services, and Investments.

Hudson Global intends to capitalize on a substantial value proposition, leveraging approximately $240 million in net operating losses (NOLs) to enhance shareholder returns. As of December 31, 2024, Hudson reported $240 million in usable federal NOLs, while Star Equity stated $44.6 million in federal NOLs and $17.6 million in state NOLs.

Prior to the merger agreement, independent special committees from both companies approved the transaction. Additionally, the Boards of Directors for both entities recommend shareholders support the merger in upcoming votes.

Leadership for NewCo has been established, with Jeff Eberwein designated as CEO and Rick Coleman appointed COO. The integration of both companies will maintain existing brand identities and will see a board made up of members from both Hudson and Star Equity.

As for the market’s response, the most recent analyst rating for Hudson Global stock stands at “Hold,” with a projected price target set at $19.00. Rights agreements and charter amendments have also been established by both companies to restrict stock ownership to 4.99% unless prior board approval is obtained.

To further inform stakeholders, Hudson and Star announced plans to host a joint conference call on May 22, 2025, at 10:00 AM ET to discuss the details surrounding the merger. A Form 8-K related to the merger will also be filed with the SEC, and additional information can be accessed on the companies’ respective websites.

It is essential to note that the announcement contains forward-looking statements, highlighting inherent uncertainties about the merger’s prospective benefits and the operational outcomes of the newly formed company moving ahead.