Purchase of Phone Firm Is Completed

American Businessphones Inc. of Irvine, a fast-growing supplier of telephone systems for small and medium-size businesses, said Tuesday that it has completed the previously announced purchase of a Torrance competitor in a deal valued at $1.3 million.

Dana Karcher, chief financial officer for American Businessphones, said the purchase of 16-month-old California Telamerica Inc. gives his company a strong customer base and an opportunity to expand its operations. California Telamerica had revenues of $1.2 million and profits of $79,000 in the 10 months ended Dec. 31.

Frank J. Feitz, founder, chairman and president of American Businessphones, said the purchase price included a $300,000 cash payment and 130,000 shares of his company’s stock, valued at about $1 million when the transaction was concluded last Friday.

Feitz said Robert W. Hogan, 43, president of California Telamerica, has become a regional manager of American Businessphones and Jean R. Stiegemeier, 42, chairman of California Telamerica, will serve as a consultant to the parent company, specifically looking at business opportunities in the Midwest.