UPDATE: Daktronics Agrees to Purchase Belgium Display Manufacturer
Daktronics (Nasdaq: DAKT) has entered into an agreement to purchase OPEN Out-of-Home Solutions (OPEN), a Belgium company. OPEN is a European industry leader in providing light boxes and scrollers, advertising signs and billboard advertising displays to third party advertising (TPA) companies. OPEN has been in business over 20 years, and it is privately owned.
Daktronics and OPEN have been cooperating to manufacture and deliver digital displays in Europe using OPEN's proprietary cabinetry system and Daktronics' designed and manufactured electronics for the past few years. With the addition of this combined digital product and OPEN's product line to Daktronics' existing display systems offerings, Daktronics positions itself in the European marketplace with a complete product line for TPA companies.
Under the agreement, Daktronics will acquire a modern 40,000 square foot facility with office and manufacturing space. Having a manufacturing facility in Europe will allow Daktronics to better serve the Europe/ Eurasia TPA market with competitive pricing and delivery.
Daktronics will be working with OPEN over the next few months to complete the acquisition and integrate OPEN into Daktronics. The closing is expected to occur in May 2013, at which point OPEN will operate as part of Daktronics. Under the agreement, Daktronics will acquire all of the stock of OPEN. Terms of the agreement are confidential.
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