Forth Dimension Displays, the Scottish pioneer in high-resolution micro-screens and simulation technology for medical and military equipment, has been acquired by Nasdaq-listed Kopin for £7 million, triggering windfalls averaging £20,000 for the bulk of its staff.

The remaining 90% of the gain will benefit venture capitalist investors Doughty Hanson and Amadeus. The company, is based at Dalgety Bay in Fife.

It employs around 40 staff in Scotland as well as a small sales department in California, and specialises in providing tiny screens and simulation tech- nology for militaries to use in their training.

Forth hit the headlines last year after striking a deal with the US Army to supply training helmets for helicopter pilots and tank commanders.

The state-of-the-art helmets are fitted with graphics and screens supplied by the Fife firm.

The company has also recently struck a deal to provide the US Air Force with simulation training technology for fighter jets and has moved into the cinematography market.

Greg Truman, chief executive of the Fife firm, told The Herald: “We are coming off a very good 2010 with design wins with several high-performance cinematography camera manufacturers.

“However, the main rationale behind the sale was about providing an exit for the venture capitalists,

“But from the point of view of the staff and the company it was about finding a sale that was the right fit, which I think that has been achieved.

“Our products and Kopin’s products are certainly complementary, and the deal will also open up new markets for us, particularly in consumer electronics where traditionally we have not been that strong.

“And not that Kopin are going to flood us with money, but it is no secret that the cash and the ability for them invest [in Forth] is there.”

Mr Truman also there would be no staff cuts and that Massachusetts-based Kopin, which specialises in lightweight, power-efficient LCD displays, has no plans to move the company out of Scotland.

Asked about the windfalls, he said: “I can’t get into specific amounts, but almost all the staff collectively have about 10%.”

Meanwhile, Forth’s annual return, which was obtained by The Herald from Companies House, reveals that former employees Mark MaCallum and Maureen Paterson also own minority stakes.