Star Equity Holdings has acquired Harte Hanks for $38.4 million in an all-cash transaction. The deal, which closed following approval from Harte Hanks shareholders, transfers full ownership of the nearly century-old customer experience firm to the Connecticut-based industrial holding company. Harte Hanks will operate as a standalone business unit under Star Equity’s portfolio.
Harte Hanks, which describes itself as “The Customer Company,” provides omnichannel marketing, data services, customer care, fulfillment, and logistics to brands across CPG, pharma, retail, B2B, and ecommerce. Its operations include managing over 4 million packages and 4 billion mail pieces annually, alongside a transportation management platform that moves 1.3 billion pounds of freight each year. Star Equity Holdings, which focuses on acquiring and operating businesses in manufacturing and industrial services, has no prior presence in the marketing or logistics services sector.
The acquisition gives Star Equity a diversified revenue stream outside its core industrial base, while providing Harte Hanks with access to a parent company that has a track record of operational oversight and capital allocation. For Harte Hanks, the transaction resolves a period of uncertainty around its ownership structure and provides a stable financial foundation to continue serving its long-standing client relationships, which average more than 12 years in tenure.
The purchase price of $38.4 million represents a modest valuation for a company with Harte Hanks’ scale, reflecting the challenges it has faced in recent years amid shifting demand for traditional direct marketing services. Star Equity’s management has indicated it will evaluate Harte Hanks’ existing cost structure and growth initiatives, though no specific operational changes have been announced. The combined entity will now span industrial manufacturing and customer experience services, a pairing that offers limited overlap but potential for shared back-office efficiencies.
With the transaction complete, Harte Hanks retains its brand, leadership team, and client contracts, while Star Equity assumes responsibility for its balance sheet and strategic direction. The new ownership is expected to provide the capital discipline and governance that Harte Hanks has lacked as a public company, though the near-term focus will be on stabilizing revenue and preserving client retention in a competitive CX market.