Samsung Display has announced a definitive merger agreement with eMagin, the American developer of active-matrix OLED microdisplay technology. The transaction, involving the acquisition of all outstanding eMagin common stock at $2.08 per share in cash, is valued at approximately $218 million. The purchase price signifies a 10% premium on eMagin’s closing stock price of $1.89 on May 16, 2023, and a 24% premium on its six-month volume-weighted average price of $1.68, offering a significant return for the company’s shareholders.
eMagin, based in Hopewell Junction, NY, is well-known for its high-resolution microdisplays used in augmented reality (AR), virtual reality (VR), and other near-eye imaging products. The company’s proprietary direct patterning (dPd) technology has been particularly applauded in the industry.
Andrew G. Sculley, eMagin’s Chief Executive Officer, expressed confidence in the merger, indicating that Samsung Display’s resources and expertise will be instrumental in scaling their next-generation microdisplay technology. Sculley added that the deal is not just a win for the company’s shareholders but also its customers, who can expect enhancements in production yield, efficiency, and quality control.
Samsung Display views this acquisition as strategically vital. President & Chief Executive Officer, Joo Sun Choi, highlighted the potential of growth in XR (Extended Reality) devices, and the role eMagin’s technology will play in fortifying Samsung’s presence in this area. Post-acquisition, eMagin will continue its operations from its current location in New York.
The deal has received unanimous approval from eMagin’s Board of Directors, with key stockholders holding 21% of the total voting power already committing to vote in favor. Subject to shareholder and regulatory approvals, the merger is anticipated to be completed in the second half of 2023.