2 Disk Drive Firms Seek to Strengthen Roles With Merger

Two small Irvine computer disk drive makers have tentatively agreed to merge operations in a $4-million deal designed to strengthen their role in that highly competitive segment of the personal computer industry.

ProAPPInc., a year-old company that makes disk drives for the Apple II and Macintoshcomputers, will become a part of Logic Array Inc., a 3-year-old company that makes similar products for IBM and IBM-compatible personal computers. Although the two privately held companies have combined annual sales of about $6 million to $8 million, both have been losing money.

The merger, expected to become final next month, is one of several moves within the personal computer industry to take advantage of the new products recently announced by Apple Computer. Furthermore, small disk drive makers have been under increasing price and competitive pressures and have sought mergers to bolster their presence in the market.