Iwerks Completes Deal to Purchase Rival Firm

Iwerks Entertainment Inc., a Burbank producer of special-format movie theater systems and virtual reality attractions, said it has completed its $17-million acquisition of rival Omni Films International Inc.

The deal called for Omni shareholders to receive $4.4 million in cash and about 1.49 million shares of newly issued Iwerks common stock, worth $13 million based on Iwerks' stock price when the deal closed on Thursday. Or, instead of the stock, Omni shareholders could receive $1.42 in cash for each Omni share, and 0.424303 share of Iwerks common stock.

Omni, based in Sarasota, Fla., specializes in designing and manufacturing large-screen, three-dimensional and motion-simulation theaters. Under the agreement, Omni will become an Iwerks subsidiary.

In addition, Iwerks said it recently signed contracts valued at about $4 million to develop theaters in Asia.

Iwerks simulation theaters are being developed in Thailand, which is scheduled to open in September, and in the Philippines, which will open in October. Another simulation theater in China is due to open in September, 1995.

Iwerks is also constructing giant-screen theaters for a science and technology museum outside Beijing, China, due to open this summer, and at the Singapore Discovery Center, an educational and entertainment complex scheduled to open in July, 1996.

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