Leyard Optoelectronic, the LED display products manufacturer, and Planar Systems, the display and digital signage technology manufacturer, have entered into a definitive merger agreement. Leyard will acquire all of the common stock of Planar for $6.58 per share, valuing Planar’s equity at approximately $156.8 million.
The pending acquisition both augments Leyard’s existing range of LED display products and enables the company to expand its position outside the Chinese market.
Victor Li, Chairman of Leyard, said: “We believe that Planar and Leyard complement each other and that this acquisition will create significant synergies. We intend to strongly support the continued growth of the Planar business, with standalone management, under the broader Leyard umbrella. This acquisition demonstrates Leyard’s ongoing commitment to expanding its global presence. The combination of Planar's strong customer relationships, respected product offerings, and history of innovation across the organization, together with Leyard's market leading position in emerging video wall technologies create inspiring solutions for customers.”
Gerry Perkel, Planar’s president and CEO, said: “I believe this transaction represents an outstanding opportunity for our shareholders, employees and customers."
In its Q3 financial results, Planar reported revenue of $42.5 million, slightly lower than the corresponding 2015 figure. Net profit for the period, however, increased by 7% to $11.4 million.
Closing of the acquisition is expected to occur in Q4 of 2015.