Hudson Global and Star Equity Holdings Join Forces

Star Equity Holdings and Hudson Global are coming together in a strategic merger aimed at unlocking significant value for shareholders. The deal will create a new, multi-sector holding company combining Hudson’s global talent solutions platform with Star’s diverse portfolio of operating businesses. Hunt Scanlon Ventures takes a closer look at the transaction!

May 29, 2025 – Star Equity Holdings (Star) and Hudson Global, a global total talent solutions provider operating under the brand name Hudson RPO, have inked a definitive merger agreement. Pursuant to the merger, Star will merge with and into a wholly owned subsidiary of Hudson to form “NewCo”. “We are pleased to announce the signing of this merger agreement, a combination we believe will create more shareholder value than either company could achieve independently,” said Jeff Eberwein, CEO of Hudson. “We expect NewCo’s operating businesses to flourish inside NewCo’s holding company structure, as time and resources previously spent on public company and corporate matters can now be dedicated to organic and inorganic growth opportunities at the operating level. We believe the cost savings and diversification of revenue streams will provide considerable value to shareholders.”

“The merger of Star Equity Holdings and Hudson Global is a strategic combination that creates immediate value through increased scale, stronger financials, and diversified operations,” said Scott A. Scanlon, CEO of Hunt Scanlon Ventures in Greenwich, Conn. “This deal demonstrates how thoughtful consolidation can unlock growth potential and deliver enhanced returns for shareholders.”

“Since Star converted to its holding company structure in 2019, our goal has been to acquire attractive businesses, either to complement our existing platforms, or to establish new growth platforms,” said Rick Coleman, Star’s CEO. “While we have completed and continue to work on various M&A initiatives, this transaction is transformative for Star. Star’s shareholders will benefit from the combined company’s greater scale, profitability, and stock trading liquidity, as well as the financial advantages of increased market capitalization, and the utilization of Hudson’s sizable NOL. We look forward to leveraging all of these benefits to maximize shareholder value.”

Prior to signing this merger agreement, both companies’ boards of directors established independent special committees to evaluate the benefits of the potential merger. While the terms of the merger have been approved by both special committees and each of the companies’ respective boards of directors, closing is subject to regulatory approvals as well as the affirmative votes of Hudson and Star shareholders at their respective shareholder meetings to be held later this year. With both companies being public, the boards of directors of Hudson and Star have recommended that the respective shareholders of HSON and STRR vote for the merger at these meetings.

Related: How to Identify Leadership Potential in Private Equity Acquisitions

Following the completion of the merger, NewCo will have four reporting segments: Building Solutions (consisting of KBS Builders, EdgeBuilder-Glenbrook, and Timber Technologies), Business Services (Hudson RPO), Energy Services (Alliance Drilling Tools), and Investments. The merger is expected to have no impact on clients, employees, or the brand names of any of NewCo’s operating businesses. NewCo’s board of directors is expected to be composed of the three independent directors from each of Hudson and Star, as well as Mr. Eberwein. NewCo management will include Mr. Eberwein as CEO and Mr. Coleman as COO.

Key Benefits of the Transaction

The merger between Star Equity Holdings and Hudson Global forms a larger, multi-sector holding company with pro-forma annualized revenues of $210 million. NewCo is targeting $40 million in adjusted EBITDA by 2030, underpinned by an estimated $2 million in annualized cost savings expected within the first year post-merger. Additionally, the combined structure enhances the likelihood of utilizing $240 million in U.S. Federal net operating losses (NOLs), a benefit less attainable by Hudson on a standalone basis.


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NewCo’s holding company model introduces greater revenue diversification by incorporating new segments from Star, while its strengthened balance sheet and credit profile significantly improve its capacity to finance growth initiatives, including acquisitions. The structure also offers greater flexibility to monetize or raise capital for business units based on private market valuations.

Transaction Details

  • The merger will be a stock-for-stock transaction.
  • Star will merge with and into a wholly owned subsidiary of Hudson, and Hudson will be the surviving public entity.
  • Hudson will acquire all the outstanding common and preferred shares of Star, issuing 0.23 shares of HSON common stock for each share of STRR common stock, approximately in line with the 20-day VWAP trading ratio between the two stocks.
  • Hudson will issue preferred stock with identical terms to Star’s preferred stock to be exchanged on a one-for-one basis.
  • Upon completion of the merger, Hudson shareholders will own approximately 79 percent of NewCo, and Star shareholders will own approximately 21 percent of NewCo’s estimated 3.49 million shares outstanding.
  • Pending regulatory and shareholder approvals, the merger is anticipated to close in the second half of 2025.

Star’s special committee was advised by Oberon Securities (financial) and Littman Krooks (legal). Hudson’s special committee was advised by Houlihan Lokey (financial) and Morgan Lewis (legal).

Past Deals

Last year, Hudson RPO acquired Striver, a Dubai-based executive search firm. “With the new acquisition of Striver in the United Arab Emirates (UAE), Hudson RPO is strongly equipped to partner with new and existing clients for their senior talent acquisition needs in the rapidly growing Middle East region,” the company said. “We are pleased to continue to expand and enhance our offering in the executive search space,” said Jake Zabkowicz, global CEO of Hudson. “This furthers our ability to become and remain a core strategic partner for our clients as we assist them in putting the right people in place at all levels of their organizations to develop and execute a winning business strategy.”

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The firm’s Middle East executive search efforts are led by Striver’s founder and current CEO, Toby Simpson, who took on the role of managing director, executive search at Hudson RPO. Mr. Simpson has experience in executive and non-executive searches in investment banking, asset management and private equity; largely for portfolio companies across a wide range of sectors.

Hudson RPO also acquired Executive Solutions, a Dubai-based talent solutions company. “With the entry into the United Arab Emirates (UAE), Hudson RPO is strongly equipped to serve talent acquisition functions with volume hiring in the rapidly growing Middle East region,” the company said.

“The team at Executive Solutions is well known in the region for providing outstanding results for companies that see a competitive advantage in broadening their presence in the Middle East,” said Mr. Zabkowicz. “This acquisition will give our clients across the globe confidence that we can find and place the best talent in the UAE and the Middle East region for their strategic business needs.  We look forward to working with the deeply experienced and well-regarded Executive Solutions team to serve our combined client base on a global scale.”

Established in 2008, Executive Solutions has a track record of assisting organizations in finding and placing candidates for a wide range of roles across industries. The company provides outsourcing of both long- and short-term volume recruitment, rapid growth projects, special projects, overseas campaigns, and Emiratization.

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Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media

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