Complete Management Systems, a privately held Santa Ana-based maker of personal computer enhancement systems, has merged with Electro Funds Corp. of Denver.
Under terms of the transaction, Complete Management Systems’ shareholders received 86.7% of the closely held Electro Funds’ 42,200,000 outstanding shares of common stock.
As part of the deal, Electro Funds’ corporate officers have resigned and been replaced by officers from Complete Management Systems. The newly formed company will have its headquarters in Santa Ana.
Jim Farooquee, president of Complete Management Systems, said the acquisition by Electro Funds allowed Complete Management Systems to shortcut the yearlong process to become a publicly traded corporation. Electro Funds stock is traded over the counter.
Electro Funds, a company which is developing a funds transfer system for use by grocery and convenience stores, was looking for a company that would “take their product design and do something with it,” Farooquee said. As a result of the acquisition, the new company inherits $700,000 in Electro Funds assets as well as $7 million in warrants which, Farooquee said, the company plans to exercise.