---
schema_version: "secwatch.filing_event.v1"
accession: "0000707388-25-000023"
form_type: "8-K"
ticker: null
cik: "0000707388"
company_name: "STAR EQUITY HOLDINGS, INC."
filed_at: "2025-03-04T23:59:59+00:00"
generated_at: "2026-05-25T16:21:22.749276+00:00"
event_type: "m_and_a"
sentiment: "positive"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

# Star Equity acquires Alliance Drilling Tools for $12.65M enterprise value; establishes Energy Services division

## Summary
- Total consideration $12.65M: $4.9M cash + 775,000 Series A Preferred shares ($7.75M liquidation value).
- ADT's 2024 revenue ~$10.5M, 48% gross margin, $2.4M Adjusted EBITDA.
- Transaction funded via $2.5M debt from Austin Financial plus cash on hand; secured $3M credit line.
- ADT will operate as new Energy Services division; real estate valued at >$3M to be sale-leaseback.

## SEC filing metadata
- accession: 0000707388-25-000023
- form_type: 8-K
- cik: 0000707388
- company_name: STAR EQUITY HOLDINGS, INC.
- filed_at: 2025-03-04T23:59:59+00:00
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 2.01, 2.02, 2.03, 3.02, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/707388/000070738825000023/0000707388-25-000023-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/707388/000070738825000023/strr-20250303.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0000707388-25-000023
- JSON: https://secwatch.observer/filing/0000707388-25-000023.json
- Plain text: https://secwatch.observer/filing/0000707388-25-000023.txt

## Key facts
- Debt Financings
  STAR EQUITY HOLDINGS, INC. incurred credit facility of up to $3,000,000 with Austin Financial Services, Inc. at prime rate plus 1.75% maturing March 4, 2028.
  - Instrument: credit facility
  - Principal: up to $3,000,000
  - Counterparty: Austin Financial Services, Inc.
  - Rate: prime rate plus 1.75%
  - Maturity: March 4, 2028
  - Event: incurrence
  source text: On March 3, 2025, Alliance Drilling Tools, LLC (the “Borrower”) entered into a Loan and Security Agreement (the “Austin Loan Agreement”) with Austin Financial Services, Inc. (“Austin”) providing the Borrower with a working capital line of credit of up to $3,000,000, subject to the conditions and procedures set forth in the Austin Loan Agreement. Availability under the Austin Loan Agreement is based on a formula tied to the Borrower’s eligible accounts receivable, inventory and equipment, and borrowings bear interest at the prime rate plus 1.75%, with interest payable monthly and the outstanding principal balance payable March 4, 2028 (the “Maturity Date”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/707388/000070738825000023/0000707388-25-000023-index.htm
- M&A Transactions
  STAR EQUITY HOLDINGS, INC. completed an acquisition involving Alliance Drilling Tools, LLC for up to $4,900,000 in cash and 775,000 shares of Series A Preferred Stock (closed 2025-03-03).
  - Action: acquisition
  - Counterparty: Alliance Drilling Tools, LLC
  - Consideration: up to $4,900,000 in cash and 775,000 shares of Series A Preferred Stock
  - Closing: 2025-03-03
  source text: Company shall become a wholly owned subsidiary of the Company. In connection with the closing of the transaction, the Company will pay the Sellers aggregate consideration of (i) $4,900,000 (the “Cash Consideration”) and (ii) issue 775,000.00 shares (the “Stock Consideration”) of the Company’s 10% Series A Cumulative Perpetual Preferred Stock, par value $0.0001 per
  evidence_url: https://www.sec.gov/Archives/edgar/data/707388/000070738825000023/0000707388-25-000023-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.