Planar Systems Inc., of Oregon, today announced the sale of its medical business segment to hospital surgical imaging firm NDS Surgical Imaging for $34.25 million.

According to Planar, proceeds from the sale will be used to pay off the full outstanding balance of the company’s current line of credit and augment future working capital needs. Furthermore, the company reported that it will be working with NDSsi over the next several months to ensure that its medical business unit customers are fully supported in the transition.

Structured as a sale of all of the outstanding capital stock of Dome Imaging Systems Inc., a direct subsidiary of Planar, the medical business segment purchase includes all of the company’s medical-grade diagnostic imaging and patient monitor products. It will not include other products sold by other Planar business units to medical end users, such as its specialty EL displays sold through its industrial business unit and its commercial-grade displays sold through its commercial business unit.

Cash proceeds will be remitted to Planar in two payments, with $30 million paid on Aug. 6, and the remaining $4.25 million paid no later than Sept. 25.

Chela Capital Partners advised Planar on this transaction.