Titan to Buy Laser-Technology Leader

Titan Corp., an Encino-based defense services company, has continued its efforts to restructure itself by reaching an agreement to buy a small Costa Mesa firm that develops applications for laser technology.

Rolf B. Erikson, senior vice president of Titan, would not disclose how much Titan will pay for 10-year-old Spectron Development Laboratories, which is known as a leader in laser technology and for its success in getting federal research and development funds.

Titan’s agreement to purchase Spectron follows the sale earlier this month of its ferrite division in Keasbey, N.J., to the Allen-Bradley Co. of Milwaukee. Titan is also looking for a buyer for its motor unit in El Paso, Erikson said.

Formed in May

Titan was formed in May from a merger of Titan Systems International of La Jolla and Encino-based Electronic Memories & Magnetics. Titan officials have said they intend to restructure their electronics business into a military-equipment company with more advanced technology.

Erikson said the Spectron acquisition is intended to “enhance and strengthen” Titan’s position in laser technology. Titan provides design, development and testing services for the government and defense contractors.

“Titan’s basic strategy is to acquire technology companies that need its manufacturing capability,” said Jim Horan, an analyst with Dillon, Read & Co. in New York.

No Major Changes Planned

The Spectron acquisition is scheduled to be complete by the end of the year, Erikson said. He said Titan will maintain the management at Spectron and plans no major changes for the company. Spectron, which is privately held, posted 1984 earnings of $204,000 on revenues of $3.7 million. It employs about 50.

Titan, which is publicly held, reported sales of $25.8 million for its last quarter, up 18% from the same period a year ago, after restating last year’s figures to account for the May merger.

Most of Titan’s production is overseas, but it employs 300 at its Chatsworth plant, where workers make computers that operate in areas contaminated by radiation. Another 15 work at its Encino headquarters, Erikson said. Worldwide, the company employs 1,800.