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21 Jul 2006
Combination of $46 million plus stock to secure acquisition, enable Planar's move into command and control and digital signage large-format display markets.
Planar Systems, Beaverton, OR, US, is to acquire all of the outstanding capital stock of privately-held Clarity Visual Systems for $46 million in cash and Planar stock. Clarity provides "command and control" digital displays and digital signage hardware and software systems for wide-ranging applications.
Planar says its aim is to launch its new strategy to further expand into the value-added, high-growth segments of the specialty display marketplace.
"Our financial strength has provided the flexibility to pursue attractive growth opportunities that integrate our flat panel display technology and market experience with the Planar's aim is to launch its new strategy to further expand into the value-added, high-growth segments of the specialty display marketplace skills and product focus of a company such as Clarity," said Gerry Perkel, Planar's president and CEO.
"This acquisition fits with our strategic direction, focusing on specialized display market segments that allow us to deliver more value and sell higher-margin solutions. Moreover, the acquisition of Clarity increases Planar's future revenue growth trajectory as well as our future profitability."
Clarity's range includes "premium" display solutions for applications including transportation and traffic control, security and defense, energy, broadcast and telecoms. The company's patented information processing hardware and software solutions control the display of information from a wide variety of sources to the display system application.
The world market for command and control room visual systems was estimated by iSuppli at more than $400 million in 2005, and is forecast to grow more than 15% annually.
The digital signage market in which Clarity participates is experiencing rapid growth driven by a number of factors, including broadband delivery of multimedia content, trends in advertising toward targeted marketing campaigns at the point of purchase, and overall reductions in display component costs due, in part, to broad consumer adoption of related product categories.
Clarity and its related Coolsign brand has sold over 5,000 signage systems including specialized signage monitors and/or networking software to a variety of attractive market segments.
Planar's initiatives in retail signage and kiosk systems will be combined with Clarity's market position in digital signage to address this growing market's need for display network management software and specialty displays. The worldwide market for electronic signage was estimated by iSuppli at $1.3 billion in 2006, growing to more than $2.3 billion by 2008.
"Our competitive advantage is in its ability to create innovative, customer-focused solutions for the delivery and display of networked visual information, as well as the talent and commitment of its workforce," said Paul Gulick, president and chief executive officer of Clarity.
"I believe the combination of Clarity's market leadership in networked display solutions with Planar's flat-panel specialized display solutions will allow the combined company to uniquely address growth markets around the world."
Clarity was founded in 1995 and recorded net sales of $59 million through the year ending June 30, 2006. It employs approximately 200 people, with more than half based at the company's headquarters in Wilsonville, Oregon. Upon completion of the acquisition, Gulick, and senior VP sales and marketing, Kris Gorriaran will join Planar's executive team.
About Planar
Planar Systems provides valued-added display hardware and software for a variety of specialty display markets worldwide. Hospitals, shopping centers, banks, businesses, and the like depend on Planar to provide displays to exacting requirements. Founded in 1983, Planar is headquartered in Oregon, USA, with offices, manufacturing partners, and customers worldwide.
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