W.R. Grace Buys Stake in L.A. Software Firm

W. R. Grace has bought a 39% stake in Van Nuys-based SoftKat Inc., said to be the nation’s largest distributor of educational computer software, the firms said Tuesday.

SoftKat Chairman Modie Katz said that the price was $4.2 million and that Grace’s Baker & Taylor book distribution unit will get three of the seven seats on SoftKat’s newly constituted board. Grace also got an option to buy the rest of SoftKat in 1988.

Distributes Adult Software

Privately held SoftKat, which was started by Katz and company President Alan Gleicher in Katz’s garage in January, 1983, projects sales of $22 million for 1985. In addition to acting as a wholesaler of educational software for children, the company reviews all of the programs that it stocks and publishes a catalogue describing them.

Last June, SoftKat also began distributing adult software for home computer users. Katz said that business already accounts for 20% of sales.

Baker & Taylor, based in New York like its parent, says it is the largest book distributor in the country, dealing with libraries and bookstores.

‘Courted’ for a Year

“They’ve been courting us for about a year now,” said Katz, adding that Grace wanted to buy all of SoftKat now. But “we’re not ready to sell the company. We’re having too much fun,” he said.

Citing the complementary nature of the two businesses, August Umlauf, president of Baker & Taylor, said in a statement: “The market for educational software is very healthy with excellent prospects for continued growth.”