Leading innovator of high-performance display systems for image-intensive healthcare applications joins the Planar family
"This acquisition fits perfectly with Planar's
strategic objectives", said Balaji Krishnamurthy, president
and CEO of Planar: "It provides us quick access to a rapidly
growing market segment that we have targetted, and the new talent
and products complement our existing team and line-up of medical
display solutions extremely well." The purchase price of
$61million comprised $49 million in cash, $3 million in new
Planar shares issued to certain Dome stockholders, and about $9
million in the value of existing Dome stock options assumed by
A new $40 million, Libor-based debt facility and
cash-on-hand were Planar's sources of cash funding.
company's cash balance following the transaction is about
$11 million, and its fully diluted share count is expected to
increase by about 600,000 shares as a result of the transaction.
Privately held since its founding in 1989, Dome has been a
leading innovator of high-performance display systems for
image-intensive healthcare applications.
In 2001, Dome recorded
sales of about $28 million and, as a percentage of sales,
achieved gross margins above 60% and operating income of about
In the quarter ended 31 March 2002, Dome recorded sales of
about $10 million.
"I'm very pleased to be welcoming
the 68 employees in our new Waltham facility to the Planar
community", continued Krishnamurthy: "The business plan
going forward does not call for major changes in staffing levels:
rather, we're looking forward to the collaboration of these
knowledgeable and experienced people within the Planar team.
example, product development and software expertise in Waltham
will be utilised in other projects underway in Planar, while our
established competencies in offshore production and supply-chain
management will be deployed there." Dome has achieved the
leading share of the markets it serves with high-performance
flat-panel monitors, controller boards for use in both flat-panel
and CRT displays, image calibration devices and image-enabling
Dome's referral and diagnostic-quality flat-panel
monitors round out Planar's medical display systems to span
the range of imaging needs of the company's growing list of
The move toward digital images and electronic patient
record keeping in healthcare is driving the growth in the medical
markets that Planar serves.
Research and development work valued
at $2.3 million, which Dome had in process at the time of the
transaction, will be recorded as a one-time charge in
Planar's third quarter of fiscal 2002, impacting net income
by an estimated $0.16 per fully diluted share.
intangible assets associated with the transaction will be at a
rate of $2.8 million per year over the first two years, stepping
down thereafter until all such assets are fully amortised.
"As we have indicated since the announcement of our intent
to purchase Dome, this acquisition is expected to be accretive to
Planar's bottom line", said Krishnamurthy:
"Including new interest expense and the amortisation of
intangible assets, but excluding the one-time charge for
in-process R and D, we expect accretion of about five cents per
fully diluted share in the 2002 fiscal year."