Velotec Acquired by Wespercorp in Exchange of Stock

Wespercorp, a financially struggling computer parts maker that hopes to diversify its business, said Wednesday that it has acquired Velotec Inc., an Anaheim clinical instruments maker, in a stock swap.

While Wespercorp does not plan to leave the competitive computer peripherals business, Peter C. Yeung, president and chief executive, said the acquisition will boost the company’s revenue.

“We’re basically creating a new business for our company,” Yeung said. “We feel that while the computer business is very competitive, the medical instrumentations business creates far more growth potential for Wespercorp.”

The deal calls for Velotec shareholders to receive 1.2 million shares of Wespercorp common stock in exchange for all of Velotec’s stock. Yeung estimated the deal’s value at $240,000.

Yeung said he hopes to transform the Anaheim company into a major supplier of electro-optic medical instruments used for diagnostic research and open-heart surgery.

Velotec will be renamed Alton Instruments Corp., and its operations will be consolidated with Wespercorp’s facility in Irvine. Yeung will serve as president of both companies.

The acquisition comes nearly four months after an investor group, led by Yeung, took over the management of Wespercorp. Besides Yeung’s group, other major Wespercorp shareholders include Union Bank, a subsidiary of Japan’s Bank of Tokyo, and Tucker, Anthony, a New York investment bank.

Timothy Duffy, previously co-owner and president of Velotec, was named director of new product development for Alton Instruments.