Star Equity to Acquire Harte Hanks in $19.2M Cash + Preferred Stock Deal
STRR has more than doubled off its 52-week low of $1.95 on elevated volume (1.8× avg).
Summary
Star Equity Holdings announced detailed terms of its merger agreement to acquire Harte Hanks, with consideration of $5.00 cash or 0.5 shares of Series A Preferred Stock per Harte Hanks share, capped at $19.2 million cash and 1.92 million preferred shares.
Key Events · M&A and Partnerships · STRR
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Definitive Merger Agreement with Harte Hanks
Star Equity entered into an Agreement and Plan of Merger to acquire Harte Hanks, with Harte Hanks surviving as a wholly owned subsidiary.
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Merger Consideration Terms
Each Harte Hanks share converts into the right to receive $5.00 cash, 0.5 shares of Star's Series A Preferred Stock, or a combination, subject to proration. Aggregate cash consideration is capped at $19.2 million and preferred stock issuance at 1.92 million shares.
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Financing via Harte Hanks' Credit Facility
The cash portion is expected to be funded by a drawdown on Harte Hanks' existing $25 million asset-based revolving credit facility with Texas Capital Bank, with the drawdown not to exceed $15 million. $21.3 million was available as of June 30, 2026.
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Closing Conditions
Completion requires Harte Hanks stockholder approval, effectiveness of a Form S-4 registration statement, specified third-party consents, and completion of debt financing. Harte Hanks directors and executive officers have entered into voting and support agreements.
Analysis · STRR · Trade & Services
Star Equity Holdings disclosed detailed terms of its definitive agreement to acquire Harte Hanks, a marketing services company. Harte Hanks shareholders can elect $5.00 cash or 0.5 shares of Star's Series A Preferred Stock per share, with aggregate cash capped at $19.2 million and preferred stock issuance capped at 1.92 million shares. The deal is subject to Harte Hanks stockholder approval, an effective S-4 registration statement, and debt financing. Financing is expected via a drawdown on Harte Hanks' existing $25 million asset-based revolving credit facility with Texas Capital Bank, with the drawdown not to exceed $15 million. This is a transformative acquisition for Star Equity, significantly expanding its business services segment and adding scale. The use of preferred stock as consideration preserves cash but adds a 10% dividend obligation on the newly issued shares.
At the time of this filing, STRR was trading at $9.80 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $36.2M. The 52-week trading range was $1.95 to $11.99. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.