Datametrics to Acquire Rugged Digital Systems

Datametrics Corp., a Chatsworth maker of computer printers for the military, has signed an agreement to acquire Rugged Digital Systems, a company that retrofits computers to make them strong enough to withstand extreme conditions.

Shareholders in Rugged Digital will receive a total of 1.67 million shares in Datametrics, in exchange for their shares in Rugged Digital, said Datametrics’ president, Sidney Wing.

Datametrics’ stock has recently traded in the $1.50 per share range.

In addition, holders of Rugged Digital’s subordinated notes will receive 750,000 shares of Datametrics series B stock, which Datametrics will buy back in four years for $1.67 million. However, if Datametrics’ stock price rises enough so that the series B shares exceed $1.67 million, they may be converted into Datametrics common stock.