Comarco Inc. Agrees to Acquire L.A.-Based Firm

Comarco Inc., the Anaheim defense contractor, said Monday that it has tentatively agreed to acquire Automated Design Centers Inc., a Los Angeles-based provider of computer-aided engineering systems. The value of the deal, to be completed through a stock exchange, was not disclosed.

Founded seven years ago, Automated Design Centers provides computer-aided design and manufacturing systems that are tied to its data network centers in Los Angeles, San Jose and San Diego. The company’s annual revenues are approximately $3 million.

The purchase, which would be Comarco’s fourth in the last 15 months, is expected to be ratified by the company’s board of directors next month.

The deal calls for Comarco to issue a new class of preferred stock to be paid to Automated Design Centers shareholders at the rate of 100,000 shares per year over the next four years. The preferred stock is convertible to Comarco common shares based on the business performance of Automated Design Centers over that four-year period.