Combination positions Planar to further accelerate its growth in the medical technology market by adding diagnostic imaging to its product line
Planar Systems, manufacturer of flat-panel display solutions, has signed a definitive agreement to acquire Dome Imaging Systems. Dome's display systems for diagnostic imaging will augment Planar's line of medical-grade display and workstation systems and significantly expand the company's reach in the healthcare equipment market.
Anticipated to close in mid-April, Planar says the transaction is expected to be immediately accretive to its earnings per share.
"Planar's long-standing commitment to pursue growth opportunities in the medical market is further demonstrated by the acquisition of Dome's superb products and team," said Balaji Krishnamurthy, president and CEO of Planar.
"Building on our worldwide infrastructure and expertise in display technologies, this acquisition will benefit Planar shareholders and the current and prospective customers of both companies." Privately held since its founding in 1989, Dome has been a leading innovator of high-performance display systems for healthcare and other image-intensive applications.
The transaction unites two market leaders with complementary product lines and a combined 35-year presence serving the premier medical equipment manufacturers and healthcare institutions worldwide.
"With product development leadership and continuous dedication to customer satisfaction, Dome has led the creation and implementation of medical imaging display technology," said G Richard Fryling, president and CEO of Dome.
"As market forces now combine to generate accelerating growth, the expansion of capability in scope and scale created by joining with Planar will leverage Dome's strengths to a broader market." The acquisition is valued at $61 million, which is approximately 2.1 times Dome's 2001 revenues.
Planar will pay cash for all of Dome's capital stock, and will assume all outstanding Dome stock options.
Planar will finance the transaction with a new $40 million senior credit facility and cash-on-hand.
