U.S. affiliate of Leyard Optoelectronic Co., Ltd. will acquire Planar Systems Inc. following the merger agreement announced on 12-th of August. The merger is stated to value Planar’s equity at approximately $156.8 million on a fully diluted basis.
The transaction is still subject to regulatory approval and a shareholder vote by Planar, but it is expected to occur in the fourth quarter of 2015. Planar’s board unanimously approved the merger.
The pending acquisition augments Leyard’s existing range of LED display products and enables Leyard to expand its position outside the Chinese market, the announcement said.
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.”
According to Gerry Perkel, Planar’s President and Chief Executive Officer, the move represents an outstanding opportunity for the Planar’s shareholders, employees and customers and will position the Planar business for continued growth and innovation.
Commenting on the deal Jennifer Davis, VP of marketing and product strategy at Planar, was quoted as saying: "In our discussions with Leyard management, they were attracted to Planar’s strong selling and marketing organisations, customer relationships, history of innovation and overall organisational strength.” She also noted that Planar would keep its executive team and continue to operate as a full service entity under the Leyard umbrella once the transaction closed.