Ailing Celerity Computing Says Agreement Signed for Purchase

Celerity Computing, a financially troubled San Diego manufacturer of high-powered computers, said Thursday that Floating Point Systems of Beaverton, Ore., has signed an agreement in principle to acquire it for $1.25 million in stock and “certain cash payments.”

Floating Point may pay an additional $1.25 million in stock if certain performance requirements are met. The acquisition is subject to approval by Celerity’s shareholders and board and by Floating Point’s board.

Celerity, which reported sales of about $6.1 million last year, said earlier this year that it would become insolvent unless it found an outside source of financing or a buyer for the entire company. Among the company’s problems was the delayed introduction of a new computer model because a supplier was late in providing certain components.

In a prepared statement in which he praised Celerity’s “innovative technology,” Floating Point President Howard Thrailkill said his company will service and support Celerity’s installed base of 100 customers.

Celerity went public in 1987.