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Leyard Moves to Acquire Planar Systems

Planar Systems Inc. (NASDAQ: PLNR) announced Thursday morning that it entered into a definitive agreement to be acquired by a U.S. affiliate of Leyard Optoelectronic. The affiliate will pay $6.58 per share, and the merger values Planar’s equity at nearly $157 million.

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.

Merrill Lynch is serving as the financial advisor and Perkins Coie is serving as U.S. legal advisor for Planar in connection with this transaction.

Victor Li, chairman of Leyard, commented on the acquisition:

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, president and CEO of Planar, said:

I believe this transaction represents an outstanding opportunity for our shareholders, employees and customers. The acquisition by Leyard will provide our investors with a 42% premium to market based on our latest closing price and a 51% premium based on a seven day volume-weighted average price of Planar common stock of $4.35, and will position the Planar business for continued growth and innovation.

Shares of Planar were up 33.5% at $6.21 Thursday morning. The stock has a consensus analyst price target of $6.50 and a 52-week trading range of $3.02 to $9.17.

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By Chris Lange


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