Star Equity to buy Harte Hanks for $38.4M in cash-and-preferred-stock deal
What's the deal? Star Equity HoldingsDealroom has a profile for this one. Try Dealroom → has agreed to acquire customer experience firm Harte HanksDealroom has a profile for this one. Try Dealroom → for $5.00 per share, or $38.4 million in equity value. The all-outstanding-shares deal, announced August 14, 2026, marks roughly a 100% premium to Harte Hanks' unaffected share price.
The terms: Harte Hanks shareholders can elect $5.00 cash per share — capped at 50% of the total, or about $19.2 million — or 0.50 shares of Star EquityDealroom has a profile for this one. Try Dealroom →'s publicly traded 10% Series A preferred stock, based on a $10.00 per-share liquidation preference. The split is designed to give shareholders half cash and half income-generating stock.
Why now? Harte Hanks, a global customer experience company offering marketing, data and logistics services, has struggled as a small standalone public company. The deal "directly addresses the structural challenges" it faces, said president David Fisher, providing "immediate liquidity and continued economic participation."
What's the endgame? Star Equity is a diversified holding company that acquires and grows businesses across its Building Solutions, Business Services, Energy Services and Investments divisions. Harte Hanks would add a customer experience operation to that portfolio.
What could go wrong? The agreement includes a 30-day go-shop period, expiring September 13, 2026, during which Harte Hanks can solicit rival bids. The company said it will not disclose developments unless the board deems it necessary.
The deal, unanimously approved by Harte Hanks' board, is expected to close within 60 to 90 days, subject to shareholder approval, financing and customary conditions. Star Equity shareholder approval is not expected to be required.
The signal: The transaction reflects the pressure on sub-scale public companies to seek shelter through consolidation. Chairman Jack Griffin called it "the best outcome for our shareholders" — an acknowledgment that going private into a larger holding company can beat going it alone.
Read more: FinanzNachrichten.de
Image credit: David Berkowitz
