---
schema_version: "secwatch.filing_event.v1"
accession: "0000707388-25-000025"
form_type: "8-K/A"
ticker: null
cik: "0000707388"
company_name: "STAR EQUITY HOLDINGS, INC."
filed_at: "2025-03-05T23:59:59+00:00"
generated_at: "2026-05-25T11:54:06.334259+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 EV; preliminary Q4 2024 revenue $17.1M

## Summary
- Acquired Alliance Drilling Tools for $12.65M EV (cash-free, debt-free); paid $4.9M cash and 775,000 Series A preferred shares ($7.75M liquidation value).
- ADT generated ~$10.5M revenue, 48% gross margin, $2.4M Adjusted EBITDA for FY2024; serves oil/gas, geothermal, mining, water-well industries.
- Preliminary Q4 2024 revenue $17.1M (vs $14.1M Q4 2023), gross profit $4.4M, non-GAAP adj. EBITDA $1.1M (vs -$0.1M).
- KBS Builders signed two contracts totaling $5.2M for modular housing units in Maine; deliveries begin Q1/Q3 2025.
- Financing includes $3M line of credit and $639k term loan from Austin Financial Services, maturing March 2028.

## SEC filing metadata
- accession: 0000707388-25-000025
- form_type: 8-K/A
- cik: 0000707388
- company_name: STAR EQUITY HOLDINGS, INC.
- filed_at: 2025-03-05T23:59:59+00:00
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 2.02, 7.01, 2.01, 2.03, 3.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/707388/000070738825000025/0000707388-25-000025-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/707388/000070738825000025/strr-20250303.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0000707388-25-000025
- JSON: https://secwatch.observer/filing/0000707388-25-000025.json
- Plain text: https://secwatch.observer/filing/0000707388-25-000025.txt

## Key facts
- Debt Financings
  STAR EQUITY HOLDINGS, INC. incurred revolving credit of up to $3,000,000 with Austin Financial Services, Inc. at prime rate plus 1.75% maturing March 4, 2028.
  - Instrument: revolving credit
  - 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: providing the Borrower with a working capital line of credit of up to $3,000,000 and a term loan of $639,000, subject to the conditions and procedures set forth in the Austin Loan Agreement.
  evidence_url: https://www.sec.gov/Archives/edgar/data/707388/000070738825000025/0000707388-25-000025-index.htm
- Debt Financings
  STAR EQUITY HOLDINGS, INC. incurred term loan of $639,000 with Austin Financial Services, Inc. at prime rate plus 1.75% maturing March 4, 2028.
  - Instrument: term loan
  - Principal: $639,000
  - Counterparty: Austin Financial Services, Inc.
  - Rate: prime rate plus 1.75%
  - Maturity: March 4, 2028
  - Event: incurrence
  source text: providing the Borrower with a working capital line of credit of up to $3,000,000 and a term loan of $639,000, subject to the conditions and procedures set forth in the Austin Loan Agreement.
  evidence_url: https://www.sec.gov/Archives/edgar/data/707388/000070738825000025/0000707388-25-000025-index.htm
- M&A Transactions
  STAR EQUITY HOLDINGS, INC. completed an acquisition involving Alliance Drilling Tools, LLC for 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 (closed 2025-03-03).
  - Action: acquisition
  - Counterparty: Alliance Drilling Tools, LLC
  - Consideration: 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
  - 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/707388/000070738825000025/0000707388-25-000025-index.htm

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