Planar Systems Acquires DOME Imaging Systems

BEAVERTON, Ore., May 1 -- Flat-panel-display maker Planar Systems Inc. has completed its acquisition of DOME Imaging Systems of Waltham, Mass.

DOME's display systems for diagnostic imaging will augment Planar's line of medical-grade display and workstation systems. The purchase price of $61 million includes $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 Planar. A new $40 million, LIBOR-based debt facility and cash-on-hand were Planar's sources of cash funding. The 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, the companies said.

"I'm very pleased to be welcoming the 68 employees in our new Waltham facility to the Planar community," said Planar CEO Balaji 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."