Rockwell Reveals Acquisition Deal
Rockwell International said Wednesday that it has agreed to acquire Communication Machinery Corp. of Santa Barbara, a leading producer of communications equipment for computers, for about $40 million in cash and stock.
The Santa Barbara firm will become a unit of Rockwell Communication Systems, a Dallas-based Rockwell subsidiary that produces telecommunications equipment and data conversion devices for computers. Rockwell, a diversified aerospace company headquartered in El Segundo, expects to complete the merger in July.
When the deal is complete, the Rockwell subsidiary will have access to Communication Machinery’s expertise in digital technology for data communications systems that are more efficient than traditional types of electronic communications. Rockwell will use that expertise to produce digital telecommunications equipment, said Michael J. Townsend, vice president of strategic planning at Rockwell Communication Systems.
Communication Machinery makes circuit boards that provide the capacity for interoffice computer-to-computer communications. The company, which produces the equipment for computer manufacturers, will remain in Santa Barbara.
Rockwell, in an unrelated move designed to consolidate itself as a company involved in advanced technology, also announced Wednesday that it has agreed to sell Rockwell-Rimoldi Group, a subsidiary that produces sewing machines for industrial users.
Rockwell agreed to sell the subsidiary, based near Milan, Italy, to Iniziative Industriali, Citicorp’s Italian-based investment banking arm. Terms were not disclosed.
