Star Equity Holdings Enters Into Merger Agreement to Acquire Harte Hanks
Star Equity Holdings, a diversified holding company, has announced that it has entered into a merger agreement to acquire Harte Hanks, a global customer experience and business process outsourcing company. The agreement, which has been approved by the Boards of Directors of both companies, is subject to the affirmative vote of Harte Hanks stockholders at a special meeting to be held later this year. Following the effectiveness of the merger, Harte Hanks will continue to operate under its own brand, with its operations expected to be reported within Star's Business Services division.
Merger Details
The terms of the merger include a 30-day go-shop period, during which Harte Hanks may solicit and evaluate alternative acquisition proposals, subject to Star's customary matching rights and a customary termination fee payable by either party in specified circumstances. The merger agreement also requires the effectiveness of a registration statement on Form S-4 registering the Star preferred stock to be issued as merger consideration. Jeff Eberwein, CEO of Star, expressed his excitement about the signing of the merger agreement, stating that Harte Hanks is a business that Star has followed for years, with a century-long heritage, blue-chip clients, and talented people.
The merger is expected to generate considerable value for Star's shareholders over time, with the addition of Harte Hanks to Star's Business Services division alongside Hudson Talent Solutions creating a scaled, diversified outsourcing platform. Mr. Eberwein noted that Star's team has experience with this type of merger, having previously brought good operating businesses inside the company's holding company structure, removed duplicative public company and corporate costs, and allowed operators to focus on serving clients and growing the business. Since Star converted to its holding company structure, the goal has been to acquire attractive businesses, either to complement existing platforms or to establish new growth platforms.
Business Services Expansion
The merger with Harte Hanks is expected to achieve both of these goals, with Star intending to move quickly on integration, leveraging Hudson Talent Solutions' back-office infrastructure to eliminate duplicative operating-company overhead. Harte Hanks will continue to operate under its own brand, with its operating teams and client relationships intact from day one. Following the completion of the merger, Star is expected to continue to report four segments: Building Solutions, Business Services, Energy Services, and Investments. The merger is expected to have minimal impact on clients, employees, or the brand names of any of Harte Hanks' operating businesses.
The acquisition of Harte Hanks is a significant development for Star Equity Holdings, as it expands the company's Business Services division and creates a more diversified outsourcing platform. With the merger, Star is poised to increase its revenue diversity and generate cost savings, ultimately creating value for its shareholders. As the company moves forward with the integration of Harte Hanks, it will be important to monitor the progress of the merger and its impact on Star's business segments. With its experienced team and proven track record of successful mergers, Star is well-positioned to capitalize on the opportunities presented by the acquisition of Harte Hanks.
Source: GlobalNewswire · 2026-08-14